Good morning, and welcome to the 2026 second quarter Fibra Mty conference call. All information presented in this conference is proprietary and all rights are reserved. The information has been prepared only for information purposes and is not a solicitation of an offer to buy or sell any securities. It is important to note that the presentation related to this conference is available at www.fibramty.com, and recordings of the call will be available on the website of the company in the next two hours. If you are connected using our webcast tool, you have the option to download the presentation in order to move the slides at your own pace. Let me remind you that the information discussed in today's call may include forward-looking statements on the company's future financial performance and prospects, which are subject to risks and uncertainties.
Additionally, during this call, we may refer to certain non-accounting financial measures. Actual results may materially differ, and the company advises not to rely on these forward-looking statements. Fibra Mty undertakes no obligation to publicly update or revise any forward-looking statements. With us this morning from Fibra Mty, we have Mr. Jorge Ávalos, CEO, Jaime Martínez, CFO, Javier Llaca, COO and CIO, Eduardo Elizondo, legal counsel, and Cesar Rubalcava with investor relations. They will discuss the most important strategic, financial, and operating aspects of the quarter. I will now turn the call over to Mr. Jorge Ávalos.
Thank you, and good morning, everyone, and thank you for joining us today. The second quarter of 2026 marks a defining moment for Fibra Mty's history. The successful completion of our tender offer for Fibra Macquarie, with more than 80% of its outstanding certificates, represents the most significant transaction we have ever made. More importantly, the combination fundamentally transforms our platform by expanding its scale, increasing diversification, and positioning Fibra Mty among Latin America's leading industrial real estate companies. As expected, Fibra Macquarie's contribution to second quarter results reflects only the period following the settlement of the tender offer. Going forward, our results will increasingly reflect the full earnings capacity of the combined platform as integration advances and synergies begin to materialize. I would like to recognize the teams at Fibra Mty, MPA, which is Fibra Macquarie's operating real estate platform, and Macquarie Asset Management.
Their professionalism, commitment, and countless hours of work made possible the first consolidated report possible, an effort that required extraordinary coordination across both organizations. Today, we are not just reporting another quarter. We are marking the beginning of a new chapter. When we founded Fibra Mty more than a decade ago, we had a very clear vision. We wanted to build a different kind of REIT based on disciplined capital allocation, internal management, strong corporate governance, and full alignment with our investors. This transaction validates that vision. It demonstrates that a company built on transparent leadership and long-term thinking can successfully execute one of the largest and most complex real estate transactions in Mexico's history while maintaining the confidence of investors, lenders, regulators, and business partners.
The strong support we received throughout the process reflects the market confidence not only in the strategic rationale of the combination, but also in our ability to execute with discipline and create long-term value. The integration of MPA is equally important. By combining the experience and capabilities of both organizations, we are creating a stronger operating platform with broader experience in property management, development, engineering, and maintenance. This will support operating efficiencies, accelerate future growth opportunities, and preserve best-in-class service for our tenants. Together with the portfolio offering completed earlier this year, the transaction enabled us to achieve several important milestones. Our assets under management increased nearly threefold to approximately $6.56 billion. Our market cap nearly doubled to $4 billion, positioning Fibra Mty as the second-largest listed industrial real estate issuer on the Mexican Stock Exchange.
Our average daily trading volume more than doubled to nearly $5.5 million, reflecting a broader investor base and greater market participation. We received credit rating upgrades from S&P Global Ratings and Fitch Ratings. As an immediate demonstration of value creation, our NAV per share in US dollar terms increased by approximately 9%. With that, I will now turn the call over to Jaime Martínez who will discuss the transaction and our financial and operating performance for the quarter in greater detail.
Thank you, Jorge, and good morning to everyone. As a result of the acquisition and the financial report, Fibra Mty's NAV per share improved by approximately 9% in US dollars compared with last quarter. The transaction was highly accretive on a standalone basis, supported by the relative trading to NAV valuations of both companies. Given the transaction's significant scale relative to Fibra Mty's pre-transaction platform, the resulting value creation is particularly meaningful for the combined entity. At the same time, our shares continue to trade at a premium of more than 10% to NAV, reflecting the market's recognition of the quality of the combined platform and Fibra Mty's investor-aligned business model. Moving to the next slide. During the quarter, we reached a key integration milestone by entering into an agreement with Macquarie Asset Management to internalize Fibra Macquarie Management once the agreed conditions are satisfied.
The transition has been carefully designed to preserve operational continuity while enabling an orderly integration. Due to the occurrence of the closing of the internalization agreement, Macquarie Asset Management will continue managing Fibra Macquarie under the existing agreement in the ordinary course of business. The closing remains subject to certain conditions, including obtaining the required approvals at the forthcoming Fibra Macquarie's shareholder meeting and the participation of Macquarie Infrastructure and Real Assets Holding in the second tender offer for Fibra Macquarie's remaining certificates to be launched by Fibra Mty. By tendering its entire holding in Fibra Macquarie, representing approximately 5% of the outstanding certificates. We have already submitted the filing of the initial tender offer documents. However, the offer remains subject to regulatory approval and accordingly, no definitive launch date has been established.
Once the conditions are satisfied, Fibra Mty will pay $172.4 million to Macquarie Asset Management as an internalization consideration, and Administrador Fibra Mty will take over the management of Fibra Macquarie. It is worth mentioning that Macquarie Asset Management will remain available to provide support services post-closing in accordance with the internalization agreement, subject to the satisfaction of applicable legal requirements, which include the acquisition of 95% of ownership of Fibra Macquarie certificates, of which we have already obtained approximately 81%. We will begin the process of releasing Fibra Macquarie. Moving to slide five. In parallel to the internalization of Fibra Macquarie's management, we established an integration plan designed to preserve business continuity while gradually bringing both platforms together. The plan involves Fibra Mty, MPA, Macquarie Asset Management, and specialized third-party advisors, all working in coordination to support the transition with prudence and care.
The process is structured in three phases. We are currently in the discovery phase, focused on maintaining uninterrupted operations, financial reporting, and regulatory compliance, while we develop a deeper understanding of Fibra Macquarie's processes and evaluate best practices for the combined entity. The second phase will focus on joining systems, workflows, and processes, including the consolidation of databases and reporting platforms. This will help to standardize information across the combined organization, improve data consistency and transparency, and enable faster, better-informed decision-making. The final phase is intended to maximize value by enhancing the combined operating model, strengthen the combined organizational structure, and position the platform for additional growth. The integration process and an orderly transition remain our highest priority. Turning to slide six. Following the tender offer for Fibra Macquarie, our balance sheet reflects a highly leveraged profile, with a loan-to-value of almost 33%, due to over 35% debt service.
This reflects two main drivers, starting with the consolidation of Fibra Macquarie's existing debt, additional borrowings to fund the cash consideration in the tender offer, and the cash retained to fund the internalization consideration once the conditions are satisfied. Importantly, we hold 10% of assets in cash, mainly from the Tender One proceeds, which reduces our loan-to-value to around 25%. As of quarter end, net of the internalization consideration, our final tally was approximately $700 million, with potential to expand to roughly $1 billion as assets for sale are monetized. Following the acquisition of Fibra Macquarie, we received ratings upgrades from S&P Global Ratings and Fitch Ratings. S&P upgraded our global scale corporate family rating from BB B - to BB B + with a stable outlook, and Fitch upgraded our local outlook rating from A A + to AA A with a stable outlook.
Again, our global rating at BB B - and a positive watch pending further progress on the integration. These remaining actions will appear Fibra Mty's debt and grade profile and reflect the strengthening of its financial capacity following the tender offer. This creates an opportunity to improve the debt structure, reduce financial cost, and execute liability management initiatives in a disciplined manner. As discussed with previous call, both Fibra Mty and Fibra Macquarie have sufficient credit facilities to address upcoming debt maturities and provide flexibility to extend the combined debt maturity profile. Moving to the following slide, the commitments made in connection with the equity offering remain unchanged. Starting with investing, as of the quarter end, we have deployed or committed more than $300 million in the cash consideration paid in the tender offer, funded in full as a pre-fisher of coverage during the evaluation.
This is because almost half of our target was preserving sufficient capacity to deliver on the remaining commitments. Second, we will continue to optimize our portfolio through strategic asset recycling. Today, we have completed sales or entered into agreements subject to certain conditions for nearly half of the office portfolio and the entire retail portfolio, and some of it is complete in various retail shortly. Lastly, the liquidity of our shares has continued to improve. During the second quarter, our ADTV reached nearly $5.5 million, supported by the larger number of shares outstanding and broader investor participation following the equity pool offering and the tender offer. I will now call upon Javier to discuss recent divestment activities, updated portfolio composition, and development activities. Javier?
Thank you, Jaime. As shown on slide nine of the webcast material, following quarter end, we completed the sale of two office properties located in Jalisco, Monterrey, both of which were already subject to binding sale agreements. The aggregate sale price was in line with the property's fair market value as determined by the external appraiser. For Fibra Mty's standalone portfolio, including assets currently under evaluation and excluding the few associated assets within the Woodbury Campus, which we intend to remain, our remaining non-industrial exposure will be approximately $120 million, concentrated in two office properties, including our best-in-class facility in Jalisco, La Perla. This is consistent with our objective of optimizing the portfolio and increasing industrial exposure. At this stage of integration, we cannot comment on potential asset recycling activity within the Fibra Macquarie portfolio. We will update the market as internalization and integration processes advance.
Before discussing the updated composition, I would like to briefly address market conditions and tenant sentiment. On page 10, we present CBRE's key indicators across the 13 primary industrial markets in Mexico. According to CBRE data, the vacancy across these markets stood slightly above 6%, while total net absorption during the first half of the year reached approximately 11 million sq ft . The Mexican industrial market is now moving into a normalization phase after the exceptional expansion recorded from 2021 through 2024. During the first half of this year, net absorption moderated and vacancy increased in selected markets, particularly where speculative supply expanded more rapidly. Nevertheless, leasing activity remained active, supported by expansions, pre-leases, and build-to-suit projects, while long-term fundamentals continue to benefit from Mexico's role in North American manufacturing and logistics supply chains. Performance remains mixed by region.
Monterrey, Saltillo, Bajío, Guadalajara continue to show generally healthy and balanced conditions. Mexico City remains highly active, but with a greater proportion of relocation and pre-leases. Reynosa and Tijuana face softer demand and higher vacancy. Overall, the current adjustment appears to reflect a rebalancing of supply and demand rather than a structural deterioration, favoring stabilized, well-located assets with long-term leases and strong tenant credit profiles. Tenant sentiment remains broadly stable, with occupiers continuing to prioritize deeper supply chain integration and the productivity advantages that Mexico offers, including attractive returns relative to labor costs compared with other manufacturing locations. Their investment decisions continue to be made with a long-term perspective rather than in response to short-term geopolitical headlines. Consistent with this view, our approach to renewals and new investments remains unchanged.
We continue to prioritize high-quality locations, low-risk tenants, and strong leasing fundamentals, including long weighted average lease terms and clear, predictable cash flow visibility. Moving on to our portfolio indicators, as shown on slide 11 of the webcast material, our geographic presence across Mexico has expanded following the acquisition of Fibra Macquarie. We now operate across 17 states with a portfolio of 383 properties, totaling approximately 16 million sq ft of GLA and an occupancy rate of around 94%. It is worth noting that despite the significant increase in GLA, our exposure across border, central, and material states remains broadly consistent. As shown on the following slide, based on our peers' first quarter 2026 report, Fibra Mty Industrial portfolio has now the largest presence in border markets with almost 40 million sq ft, representing approximately 63% of our total GLA across 242 properties.
It is worth mentioning that Fibra Mty remains our largest market, with 14.5 million sq ft that hold almost a quarter of total portfolio revenues for leases. Moving on to slide 13 of the presentation. Despite a meaningful increase in GLA, core fundamentals of our portfolio remain largely unchanged, which was a key driver in the real estate rationale behind the tender offer. Industrial assets continue to represent more than 80% of total revenues, now with greater geographic and industry diversification across all markets. The portfolio continues to be predominantly supported by US dollar denominated leases, with credit work dependence, and with inflation-linked escalations. Together, these characteristics provide resilience across economic cycles. Moving to the following slide. The top 10 tenants' share of total revenues now stand slightly above 20%, a significant quarter-over-quarter reduction resulting from the combination of the portfolios.
Fibra Macquarie's maturity profile is shorter than Fibra Mty's historical profile. As a result, approximately 30% of the revenues are set to mature during 2026 and 2027, with industrial leases representing most of those maturities. We remain cautiously optimistic about capturing non-core market opportunities while gradually the combined weighted average lease term increases. Page 15 of the webcast material summarizes our property year-over-year performance. Same property NOI growth remains strong with limited lease rotation, supported by inflation-linked escalations and renewals, new leasing activity, and expansion related developments. Together, these factors drove approximately 6% growth year-over-year in same property NOI in US dollar terms. Excluding Fibra Macquarie, acquisitions completed over the last 12 months further supported NOI growth by contributing more than MXN 90 million. As a result, Fibra Mty's standalone NOI margin remained above 90%.
Fibra Macquarie's one-month contribution added approximately MXN 288 million of NOI and resulted in a consolidated NOI margin of 88.5%. As integration progresses and moving into maximize the platform capabilities, we expect the consolidated NOI margin to gradually converge towards historical levels. Moving to slide 16, I would like to briefly address Whirlpool's announcement regarding its manufacturing operations in Apodaca. Whirlpool announced plans to gradually relocate one of the five business units operating at our Apodaca campus, beginning in the second half of 2027. Production will be transferred to its Ramos Arizpe campus, where we own the related distribution facility. Importantly, the lease agreement has a fixed maturity until December 2031. The expected exposure associated with the relocation remains limited to approximately 1.5% of Fibra Mty's total revenues.
Therefore, based on the information currently available, we do not anticipate an immediate impact on occupancy or AFFO per share. In the meanwhile, we have been in contact with companies located near the campus for potential move-ins. The property is located on one of Mexico's most active industrial corridors, with competitive lease rents and strong re-leasing potential. These characteristics should support an efficient commercialization process if required and help limit potential cash flow downtime. Moving on to slide 17. We continue to observe strong demand from existing tenants seeking to expand within our properties. These expansions are being driven by new production lines resulting from supply chain optimization and increased demand for our tenants' products, underscoring both the quality of our tenant base and the strength of our longstanding relationships.
As shown in the graph on the left, to date, we have delivered approximately $16 million on non-speculative development, generating returns above 10%. During the quarter, we signed a new expansion within the Aerotech portfolio, representing an investment of approximately $27 million and an expected yield on cost above 9%. Including this project, we currently have nearly $60 million under construction, expected to generate a high single-digit average yield on cost. These investments complement favorably acquisition deals and support growth in cash flow per share. In addition, we have under evaluation an expansion pipeline of almost $60 million, which we expect to sign. Moving up the graph on your right, as you all may be aware of, Fibra Mty has an experienced development team.
Since 2013, it has reported development deliveries that represent an investment of more than a quarter of a billion dollars, with an average yield of 11%. The integration of this team is expected to strengthen our development capabilities. At quarter end, development projects under construction in Fibra Mty's portfolio totaled approximately 240,000 sq ft of GLA, representing an estimated investment of $50 million. Additionally, Fibra Mty has almost 800,000 sq ft under stabilization and a land bank of more than 8 million sq ft of additional potential GLA, which could eventually bolster portfolio returns. That said, our primary focus will remain on stabilized assets and pre-lease development. Nevertheless, the combined platform's increased scale creates an opportunity to generate incremental returns through limited speculative development in primary markets, where strong long-term fundamentals justify the commercial risk. I will be pleased to address market, the portfolio, and investment during the Q&A.
But before that, I will return the call to Jaime to discuss financial performance. Go ahead, Jaime.
Thank you, Javier. From the acquisition date, Fibra Mty's consolidated financial statements include 100% of Fibra Macquarie's assets, liabilities, revenues, and expenses. They also separately recognize the non-controlling interest associated with the Fibra Macquarie shares not owned by Fibra Mty, and also fully recognized in Fibra Macquarie's financial statement. For analytical purposes, the financial performance metrics include Fibra Macquarie's joint venture and excludes non-controlling interest. Operational and administrative consolidated margins decreased to 89% and 81%, respectively. This decrease was mainly attributable to the inclusion of One North and Fibra Macquarie operations. Excluding this effect, Fibra Mty's second quarter NOI and adjusted EBITDA margins would have been 90% and 83%, respectively, in line with our target levels and broadly consistent with the first quarter. Excluding FX fluctuations, all key financial metrics increased year-over-year, mainly reflecting the contribution from the Fibra Macquarie acquisition.
In prior large acquisitions, EBITDA has typically grown faster than NOI as economies of scale materialize. In this case, because Fibra Macquarie's management has not yet been internalized, we are initially experiencing the opposite effect. As Javier mentioned, as we internalize Fibra Macquarie's management and begin to maximize the combined platform capabilities, we expect margins to converge toward historical levels, with the potential to exceed over time as EBITDA benefits from greater scale. Before moving to AFFO per share performance, I would like to clarify that the first half of this year distribution figures shown in the presentation already include the cash flows distributed by Fibra Macquarie that were generated before the tender offer. This explains the quarter-over-quarter increase in distribution is lower than the increase in other metrics.
Moving to the next slide, we can see that both Fibra Mty and Fibra Macquarie on a standalone basis remain on track relative to their last publicly available guidance. Beginning with Fibra Macquarie, the first bar on the left shows the annualized second quarter AFFO per share, starting approximately MXN 2.60 near the upper end of their last publicly available guidance range. For Fibra Mty, the second bar from the right shows annualized standalone AFFO per share of approximately MXN 0.90, also near the upper end of the applicable guidance range based on the quarter's average exchange rate. After excluding Fibra Macquarie's non-controlling interest, as shown in the middle bar, and dividing it by the shares issued as a consideration for the tender offer, the transaction's annualized AFFO per share is approximately MXN 0.98, almost 10% above Fibra Mty's standalone performance.
Furthermore, as shown in the financial bar in the right, consolidated annualized AFFO per share for the full second quarter is approximately MXN 0.93 per share, more than 3% above the upper end of our latest guidance range. This provides an initial indication that the transaction is also accretive on cash flow per share basis. We will report soon capturing the benefits from the internalization and combination of both companies. With that, we will conclude our prepared remarks and open the call for questions. Operator, please proceed with the Q&A session.
Thank you. If you'd like to ask a question, please press star one on your telephone keypad. If you're connected using our webcast tool, please write your question in the chat section on the platform. Our first question comes from the line of Adrian Huerta with JPMorgan. Please proceed with your question.
Thank you. Good morning, everyone. Thank you for taking my question. The question has to do with how post NQ and the acquisition of Macquarie, how your shareholder space has changed in terms of concentration, percentage of internet and foreign shareholders. How it changed with NQ and how it has changed over the last couple of years, and what we should expect in terms of share liquidity going forward on that basis.
Thank you, Adrian. That's a very interesting question. First, let's focus on international investments, which is maybe the main change that we have in our shareholder base. It changed from around 14%- 18%, which represents, in absolute terms, we were at around $ 300 million before the tender, and now we are at 18%, which is around $ 800 million, which is a significant increase of course, more than doubled. We assume that it might increase the number of international investors, as well as their attention because of the size of the company. We can find out by the normal investigation. We will see that in the next month as we go to some events, et cetera, and we will meet with more investors.
The other important fact is that we think that with that scale and the increase in the availability of the company, we might access or increase our participation in certain indexes, which will give an additional increase to the liquidity of the company. As you remember, before the first follow-on that we did back in 2024, we were trading at around $ 400,000 per day. After the follow-on, we were at, let's say, $ 2.5 million per day. As of now or as of last quarter, we were at around $ 5.6 million a day, which is a significant increase. So we think that there's an additional boost of prices that we might see in the following months.
Great. If I can just follow- up very quickly. Which are those indices that you are now participating on at the moment and that you believe you have chances to be included over the next 12 months?
César.
Adrian, this is César. Sure. The next review on the indices, it could be on MSCI. We are writing them, let's say, at the edge to be improving our participation from small cap indices to the standard index. Importantly enough, our figures improved in the last 2 months. If we are not able to enter in this review, we are hoping to enter in the upcoming one.
Thank you, César. Thank you, Jaime.
Welcome.
Our next question comes from the line of Anton Mortenkotter with GBM. Please proceed with your question.
Hi, guys. Thank you for taking my question. I have two questions. One, maybe too soon still with the consolidation process, but I was wondering if there are any surprise, positive or negatives, that you find out as you get more involved with Fibra Macquarie? The second one is related to the extraordinary costs that we saw. I was just wondering are these all the expenses that we should see, and when should we see this normalize?
We're feeling the discovery phase. Based on the information reviewed to date and the portfolio's recent operating performance, we have not identified any material issue that changes our strategic rationale for this transaction. We are closely reviewing the combined lease expiration profile for 2026 and 2027 and proactively evaluating the near-term maturities. Both remain manageable and preserving operating and financial convenience is central to our integration plan. Your other question, sorry, Anton, can you repeat the second question?
Yeah. I was just wondering if any extraordinary expenses related to the acquisition are already finalized or if we should see something still forward.
As a firm, I mean, it's basically the same. We haven't found anything in the material. Of course, we have some expenses related with the transaction, but I don't think that there's something that is special that we should mention.
Right. Well, thank you.
Thank you.
Thank you. Our next question comes from the line of André Mazini with Citi Group . Please proceed with your question.
Thanks, team. So two questions as well. The first one is around the capital recycling strategy. After the incorporation of Macquarie, what can we expect on that front, in particularly with regards to the retail portfolio? We know that a portion of the retail portfolio has JV partners. Would these JV partners be interested in your portion of the retail portfolio, if that makes any sense at all? The second question around delisting Macquarie. I think nowadays you guys have 81% directly, plus the 5% the Macquarie Group has been selling to you guys. So you need to reach 95% ownership in order to delist. If there is a timeline, or where can we expect that to happen? Thank you.
Yeah. This is Javier. Right now, it is too early to say on the recycling of the assets from the Fibra portfolio. As Jaime mentioned, we are still on the discovery phase. Our intention continues to become a full industrial platform soon. But right now, we are in the discovery process. We will continue with the divestment of the legacy Fibra Mty portfolio, non-industrial properties, and we are starting to do the analysis and the assessment on the non-industrial properties on the Fibra portfolio. But we will keep you apprised as we progress on that. Too early to share right now. As for the second question, as you know, we already have the 81% of the certificates, and we are about to launch the second offer for the remaining certificates. I think 5% of those certificates are held by MIRA Holdings.
They are going to be participating in the offer as we have agreed with them. And once we reach the 95%, we will delist. Of course, there are certain conditions that need to be concluded. We have to obtain certain approvals at the Macquarie shareholder meeting that will be held in August 11, and we still have to obtain the authorization from the CNBV and the CMA. But once those conditions are satisfied, we will proceed with any remaining steps.
Thank you very much, guys. Have a good one.
Thank you. Our next question comes from the line of Elisa Gómez with BTG Pactual. Please proceed with your question.
Hi. Good morning. Thank you for taking my question. Could we please have a word color on which were the renewals for this quarter, and which are your expectations for the coming quarter across both the legacy portfolio, Fibra Mty and Fibra Macquarie industrial assets?
Yes, sure. Thank you, Elisa, for the question. As for the Fibra Mty portfolio, during the second quarter, we have almost no activity on renewals. There were almost no expirations. If you want, we have. We are already agreed for renewal. So pretty much no activity on that front. In regards to the Fibra Macquarie portfolio, MPA, the company that Jorge mentioned on the opening remarks, is still in charge of the leasing activity and renewals and new leases for portfolio. We were still in the discovery phase again, but it has been business as usual, and we have not been reported on a renewal that has been gone through or a new vacancy on the portfolio. So I would say pretty much pretty stable on both portfolios. The exposure is diversified across the combined portfolio for 2026 and 2027. Maturities are concentrated in Laguna and Jalisco.
That I can tell you right now.
Okay. Thank you.
Thank you. Our next question comes from the line of Abraham Fuentes with Santander. Please proceed with your question.
Hi. Hello. Good morning. You have mentioned that aside Fibra Macquarie, you are going to continue pursuing inorganic growth opportunities and that you have a pipeline close to $ 700 million in half time power, about $400 million. I wonder if you can give us an update on this. Thanks.
Sure. Of course. As we continue our business as usual on both the organic and the inorganic growth, I can tell you that we are going to remain focused on the integration of both platforms. Our immediate priorities are to complete this integration, to advancing the internalization process, to execute the following vendor offer, and to position the combined portfolio for additional growth before pursuing any large transactions. We are seeing a very active market for sizable opportunities and these could come to market over the coming months. We are evaluating those. We are going to continue to evaluate every single opportunity that we run across, but our priority as well right now are those two successfully and totally complete integration of both platforms.
Okay. Thank you.
Thank you. Our next question comes from the line of Felipe Barragán with JPMorgan. Please proceed with your question.
Okay. Good morning, teams. Thanks for the call and taking my question. I just want to get your take on the portfolio age of Macquarie. It is a bit higher than what you guys have, 23 years from Macquarie versus yours is about 14. I just want to get a sense on maybe we could see some asset recycling on the Macquarie side or what is your overall take on the portfolio, and if we can see an uptick in the maintenance CapEx. I would love to hear your thoughts here. Thank you.
Thank you. Again, as we said before, we are still in the discovery process. We are going to take a very deep look into the Fibra Macquarie's portfolio in every aspect, not only age, but also the trust associated and level of maintenance that the properties have. We feel confident that the MPA group and the MAM group have done a good job on maintaining a good quality portfolio, but still too early in the game to talk about specifics on how we see the recycling or potential recycling of our properties, both industrial and non-industrial, from the Fibra Macquarie portfolio.
Got it. Thank you.
Thank you. Our next question comes from the line of Jorel Guilloty with Goldman Sachs. Please proceed with your question.
Hello, everyone. Thank you for taking my questions. The first one is, I want to understand if you already have provided any color on what the management expenses for Fibra Macquarie could look like once you do internalization. Just understanding that right now, essentially, your payment is based on market cap. Once internalization is done, what can we expect in sort of like the fees, if you will, or the SG&A, if you will, for that business, going forward? The other question is around your potential M&A pipeline. You pointed out $ 750 million to target, but as you think about time spent in the second half of the year, you are digesting this large M&A. Should we expect, what is your expectations around timing for capital deployment for further M&A?
Has it changed at all from what we would think before this transaction, or it is still business as usual, you will acquire as you see fit as the negotiations go through. Basically, are you being impacted by the consolidation of this portfolio? That is it. Thank you.
Okay. In terms of the internalization agreement, let us put it in a very simple way. Let us say that the price of the opportunity is around $2 billion, which is the market cap. It usually represents around $20 million a year as a cost of the fee. If you use this quarter $72 million, let us say at 7% or 7.5%, you are going to use or the cost of opportunity is between $12 million or something around $ 12 million. So the first outcome, it might be around $8 million per year as an advantage of internalization. The rest, I think it is preliminary to talk about. We are working on that, but as you mentioned before, we are in the discovery process. So that is pretty much what we think. Just from a 10,000 feet perspective.
In regards to the second question, as we have said before, I want to emphasize that even though our main objective and our priority right now is to successfully complete the integration of both platforms, our investment guidelines and thesis continue to be exactly the same. We are going to be disciplined on acquisitions. We are going to be careful on non-speculative development. You should not expect any change of heart on the business model that we have had in the last 10 years. We are in the process of executing a couple of our transactions that we have announced earlier this year that were in progress before the Macquarie offer. We will continue to evaluate every opportunity that comes along, but we are going to be just as disciplined as we have been in the past.
Thank you.
Ladies and gentlemen, as a reminder, if you would like to join the queue, please press star one at this time. Our next question comes from the line of Edson Murguia with Summa Cap. Please proceed with your question.
Hi. Good morning. You have two different fronts, the internal integration and the integration process. My question is, do you have any specific timeline? Let's say by the end of 2026, it is going to be phase one of the integration, and we can expect the internal management from Fibra Macquarie at the beginning of 2027. What will be the timeline? Of course, including all the regulatory approvals and so forth that you need to perform.
Thank you for your question, Edson. Even though it's difficult to say, I would say we have aggressive plans, and everybody has a strong commitment on doing that. In a few weeks, we will finish the discovery part. After that, we will start with the integration. Our main goal, and we would like to do that, is to end the year by having together both platforms. We know that that's an aggressive and a very ambitious target. But if we can find a way to combine the databases and processes, I think it's achievable. It's a very challenging idea or target, but we are working to do that.
Last, regarding on CapEx, MXN 196 million referring to Fibra Macquarie reported this quarter. My question is, are we expecting a similar number for the rest of 2026?
No, we started-
Thank you, Simon. This is César, thank you very much for your question. As Javier and Simon mentioned during the call, Macquarie Asset Management continues to be the manager of Fibra Macquarie portfolio. We are in coordination, but nonetheless, we're not in a phase where we can speak about forward-looking statements regarding the Fibra Macquarie portfolio. Obviously, once we do the closing and integration of management, we can do more updates regarding CapEx on their portfolio.
Okay. Thank you so much.
Thank you.
Thank you.
With no other questions in the queue, I will turn the conference over to the management of the company.
Thank you everyone for attending this call, and we hope to hear you soon. Have a great week. Bye-bye.
Thank you. This concludes today's conference. You may disconnect your lines at this time. Thank you for your participation.