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Magnolia Fungus?

Does anyone have any idea what is going on with my Magnolia? Is it a fungus? All ideas welcome.. I am unsure whether this is damaging the tree or not.

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However - the magnolia doesn't look happy. Is your soil suitable for it? Most of them don't like alkaline soil, but it could also be something else - very moist or waterlogged soil, or alternatively too dry, poor nutrient level etc. Very dry conditions over the last year or two in many places, has caused a lot of problems for many shrubs/trees in particular.
Can you give us some more info about it @mikeyocean?
I live in west central Scotland - not where that photo is...
Plenty of organic matter helps with that as it improves drainage on heavy, wet soil but helps it stay moist in summer rather than drying out and cracking
I live in west central Scotland - not where that photo is...