Keith Smith: So, I think as we look at our core customer and play patterns from our core customers across the portfolio, it has been strong and it continues to be strong and continues to grow, that is the case here in the Locals market, it’s also the case in our Southern states. More of the falloff last year that we saw down in those states had to do with more of the lower-end retail and the unrated. So, I think we’re pleased with the performance of our kind of mid- and upper tier-rated customers and the performance of our core play in the South.
Joe Stauff: Okay. Thank you. And then maybe one follow-up on the Locals market. As you try to anticipate, obviously, it’s still early, as you mentioned, but would you expect, say, your out-of-town visitors in the Locals market? Is that more the type of customer that’s going to experiment at Durango, or do you see that also from, say, 80% of your customers that are local?
Keith Smith: I think it would be our view that the majority of the customers — of our customers, existing Boyd, Las Vegas Locals customers who are visiting Durango or the people who live here are local customers and people, once again, who’s ZIP code is maybe closer to Durango or in between our properties and Durango, so they have a choice. It may be easier to drive there, just maybe a product that they want to go check out. In some cases, maybe a product they enjoy better. Again, it’s just [indiscernible], we have 70 days on our belt, and we’re pleased with the overall performance of our business in those first 70 days.
Joe Stauff: Appreciate it.
David Strow: Thanks, Joe. Our next question comes from John DeCree of CBRE. John, please go ahead.
John DeCree: Hi, Josh. Hi, Keith. Thanks for taking my question. A lot of ground covered. So maybe I’ll try to ask the M&A question a little differently. We certainly appreciate the balanced and disciplined approach to capital allocation that you’ve taken and in a position to have a very healthy balance sheet now. So I guess the question is, when you look at growth investments, particularly M&A, are there things that you see that would be a good fit for Boyd and maybe just aren’t for sale or the ask is too high? Just kind of given in your size and scale and kind of in the context of margins broadly across the industry, I mean, are there opportunities that might exist that would be a good fit? Are there synergies to be had? I mean, is M&A a viable strategy if you can find something that it would be priced accurately in your mind and what you could do with it?
Keith Smith: Yeah. Look, it’s a hard question to respond to. So look, as I said, first and foremost, we have to make sure that our core business is running at optimum efficiencies, and that’s our focus each and every day. Look, as we think about M&A, clearly, given the size and the scale and the scope of the company today, the opportunity has to be larger as opposed to smaller, given our breadth and our geographic breadth where we go is important. It’s got to be a market that makes sense for us. It’s got to be strategic. It’s got to be a strong market. As you look across the portfolio, could we name a half a dozen assets it would be interesting? Sure. But it probably doesn’t matter unless they’re actually for sale. And so, once again, we’re going to focus each and every day on building and maintaining a strong business.
And when something interesting hits our radar screen, we’ll take a look. But as I have said a couple of times, it’s got a hit or tick off a number of boxes before we would take a look at it.
John DeCree: Great. That’s helpful. Keith, I think you probably already answered my follow-up on that, but just to ask anyway. So, one of the criteria, most likely it would need to be upscale, that’s needle moving. So tuck-in might not really be worth your time. Is that fair?
Keith Smith: That is fair.
John DeCree: Thanks, Keith. Thank you, Josh.
Keith Smith: Thanks, John.
David Strow: Thanks, John. We have time for one last question from Stephen Grambling of Morgan Stanley. Stephen, please go ahead.
Stephen Grambling: Hey, thanks for sneaking me in. And this will just be a quick follow-up actually on M&A again. I guess coming out from a different approach, would — is there anything that would make you shy away from a potential transaction such as you generally want to own your own real estate, or are you willing to look at OpCos? And as a related financial question, do the returns that you target on M&A differ from what you’d be looking at for ROI projects?
Keith Smith: So, I have attempted to answer the M&A question a couple of times. I’m going to let Josh take a shot at this one.
Josh Hirsberg: So, I think we have — I think people who listen to these calls generally know that we’re not necessarily large fans of doing OpCo/PropCo with our existing assets, but we have been willing to do it and consider it as part of a tool for financing acquisitions, whether they’re existing tenants of a REIT or otherwise. So, I think the structure really isn’t an impendent, kind of a something that keeps us from doing anything like that. I think related to that, people should understand, and I think this is consistent with what we said about other aspects of how we think about things is, look, we’re willing to leverage up to do an acquisition and then deleverage over time as well, with the goal of getting back to — generally in the neighborhood of where we are.
