26. Other non-current liabilities

Prepaid long leases are rent instalments which Schiphol Group has received in advance on land leases to third parties. This item is recognised through profit or loss over the term of the underlying contracts.

Financial lease liabilities include the lease of office building The Base with ABP, which runs for 40 years with options to cancel after 25 years and 30 years. Based upon current interest rates early repayment in 2019 seems advantageous, as a consequence of which the premises will become the property of Schiphol Group. The financial lease obligation was recalculated, taking into account the penalty interest due, and transferred in full to the current liabilities. The penalty interest amounts to 8.8 million euros and is recognised at the expense of 2018.

In 2006, Schiphol Real Estate B.V. contributed land to Schiphol Logistics Park C.V. and acquired a 38% interest in this company. The difference between the fair value of the site at the time of its contribution of 23.7 million euros and its total historical cost of 11.7 million euros is 12.0 million euros. In accordance with the accounting policies, 38% of this profit, representing Schiphol Real Estate B.V.’s share in Schiphol Logistics Park C.V., or 4.6 million euros, should be treated as unrealised. As per the reporting date, 3.1 million euros of this amount was realised when parts of the land were sold.