Related Party Transactions |
6 Months Ended |
|---|---|
Jun. 30, 2026 | |
| Related Party Transactions | |
| Related Party Transactions | Note 11. Related Party Transactions Southland occasionally enters into subcontracts with a subcontractor in which certain employees hold a minority ownership. Cost of construction related to this subcontractor was $0.9 million and $0.7 million for the three months ended June 30, 2026 and 2025, respectively, and $0.9 million and $1.6 million for the six months ended June 30, 2026 and 2025. Accounts payable balance due to this subcontractor was $0.1 million as of June 30, 2026 and December 31, 2025. Southland enters into agreements with this related party through a competitive bidding process and have substantially the same as terms the Company would enter into with a similar, unrelated party. In July 2024, the Company closed a real estate purchase agreement to sell and leaseback three properties for $42.5 million. The Company’s Chief Executive Officer, Frank Renda, and co-Chief Operating Officer, Rudy Renda, hold a combined 25% indirect minority interest in the entity that purchased the real estate. For the three and six months ended June 30, 2026, the Company paid $1.2 million and $2.4 million, respectively, to this related party in accordance with the real estate purchase agreement. For three and six months ended June 30, 2025, the Company paid $1.2 million and $2.5 million, respectively, to this related party in accordance with the real estate purchase agreement. In the first quarter of 2026, the Company’s Chief Executive Officer, Frank Renda, Co-Chief Operating Officer Tim Winn, and Co-Chief Operating Officer, Rudy Renda, agreed to collateralize bonds issued in favor of the Company in the form of a cash deposit in the amount of $1.5 million.
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