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<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify">The accompanying consolidated financial
statements include the accounts of Costamare Inc. (“Costamare”) and its wholly-owned subsidiaries (collectively, the
“Company”). Costamare was formed on April 21, 2008, under the laws of the Republic of the Marshall Islands.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify">Costamare was incorporated as part
of a reorganization to acquire the ownership interest in 53 ship-owning companies owned by the Konstantakopoulos family (Vasileios
Konstantakopoulos and his three sons Messrs. Konstantinos Konstantakopoulos, Achillefs Konstantakopoulos and Christos Konstantakopoulos,
together the “Family”). The reorganization was completed in November 2008. On November 4, 2010, Costamare completed
its initial public offering (“Initial Public Offering”) in the United States under the United States Securities Act
of 1933, as amended (the “Securities Act”). On March 27, 2012 and on October 19, 2012, the Company completed two follow-on
public offerings in the United States under the Securities Act and issued 7,500,000 shares and 7,000,000 shares, respectively,
par value $0.0001, at a public offering price of $14.10 per share and $14.00 per share, respectively, increasing the issued share
capital to 74,800,000 shares. On March 31, 2015, June 30, 2015, September 30, 2015 and December 31, 2015, the Company issued 598,400
shares, in aggregate, to Costamare Shipping Company S.A. and Costamare Shipping Services Ltd. (Note 3) in accordance with (i) the
Group Management Agreement until November 2, 2015, and (ii) the Services Agreement (Note 3) from November 2, 2015, increasing the
issued share capital to 75,398,400 shares. At December 31, 2015, members of the Family owned, directly or indirectly, approximately
65.0% of the outstanding common shares, in the aggregate. Furthermore, on (i) August 7, 2013, the Company completed a public offering
of 2,000,000 shares of its 7.625% Series B Cumulative Redeemable Perpetual Preferred Stock (the “Series B Preferred Stock”),
par value $0.0001, at a public offering price of $25.00 per share, (ii) on January 21, 2014, the Company completed a public offering
of 4,000,000 shares of its 8.50% Series C Cumulative Redeemable Perpetual Preferred Stock (the “Series C Preferred Stock”),
par value $0.0001, at a public offering price of $25.00 per share and, (iii) on May 13, 2015, the Company completed a public offering
of 4,000,000 shares of its 8.75% Series D Cumulative Redeemable Perpetual Preferred Stock (the “Series D Preferred Stock”),
par value $0.0001, at a public offering price of $25.00 per share.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify">As of December 31, 2014 and 2015, the
Company owned and/or operated a fleet of 55 and 54 container vessels, respectively, with a total carrying capacity of approximately
320,407 twenty-foot equivalent units (“TEU”) and 317,774 TEU, respectively, through wholly-owned subsidiaries incorporated
in the Republic of Liberia. The Company provides worldwide marine transportation services by chartering its container vessels to
some of the world’s leading liner operators under long, medium and short-term time charters.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify">At December 31, 2015, Costamare had
92 wholly-owned subsidiaries, all incorporated in the Republic of Liberia, except for five incorporated in the Republic of the
Marshall Islands.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify"><b><i>(a) Principles of Consolidation:</i></b>
The accompanying consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles
(“U.S. GAAP”). The consolidated financial statements include the accounts of Costamare and its wholly-owned subsidiaries.
All intercompany balances and transactions have been eliminated upon consolidation.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify">Costamare as the holding company determines
whether it has a controlling financial interest in an entity by first evaluating whether the entity is a voting interest entity
or a variable interest entity. Under Accounting Standards Codification (“ASC”) 810 “Consolidation,” (formerly
Accounting Research Bulletin (“ARB”) No. 51) a voting interest entity is an entity in which the total equity investment
at risk is sufficient to enable the entity to finance itself independently and provides the equity holders with the obligation
to absorb losses, the right to receive residual returns and the right to make financial and operating decisions. Costamare consolidates
voting interest entities in which it owns all, or at least a majority (generally, greater than 50%), of the voting interest. Variable
interest entities (“VIE”) are entities as defined under ASC 810-10, that in general either do not have equity investors
with voting rights or that have equity investors that do not provide sufficient financial resources for the entity to support its
activities. A controlling financial interest in a VIE is present when a company absorbs a majority of an entity’s expected
losses, receives a majority of an entity’s expected residual returns, or both. The company with a controlling financial interest,
known as the primary beneficiary, is required to consolidate the VIE. The Company evaluates all arrangements that may include a
variable interest in an entity to determine if it may be the primary beneficiary, and would be required to include assets, liabilities
and operations of a VIE in its consolidated financial statements. As of December 31, 2014 and 2015 no such interest existed.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify"><b><i>(b) Use of Estimates:</i></b>
The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions
that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the
consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results
could differ from those estimates.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify"><b><i>(c) Comprehensive Income / (Loss):</i></b>
In the statement of comprehensive income, the Company presents the change in equity (net assets) during a period from transactions
and other events and circumstances from non-owner sources. It includes all changes in equity during a period except those resulting
from investments by shareholders and distributions to shareholders. The Company follows the provisions of ASC 220 “Comprehensive
Income”, and presents items of net income, items of other comprehensive income (“OCI”) and total comprehensive
income in two separate but consecutive statements. Reclassification adjustments between OCI and net income are required to be presented
separately on the statement of comprehensive income.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify"><b><i>(d) Foreign Currency Translation:</i></b>
The functional currency of the Company is the U.S. dollar because the Company’s vessels operate in international shipping
markets and, therefore, primarily transact business in U.S. dollars. The Company’s books of accounts are maintained in U.S.
dollars. Transactions involving other currencies during the year are converted into U.S. dollars using the exchange rates in effect
at the time of the transactions. At the balance sheet dates, monetary assets and liabilities, which are denominated in other currencies,
are translated into U.S. dollars at the year-end exchange rates. Resulting gains or losses are reflected separately in the accompanying
consolidated statements of income.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify"><b><i>(e) Cash and Cash Equivalents:</i></b>
The Company considers highly liquid investments such as time deposits and certificates of deposit with an original maturity of
three months or less to be cash equivalents. Cash also includes other kinds of accounts that have the general characteristics of
demand deposits in that the customer may deposit additional funds at any time and also effectively may withdraw funds at any time
without prior notice or penalty.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify"><b><i>(f) Restricted Cash:</i></b>
Restricted cash is additional minimum cash deposits required to be maintained with certain banks under the Company’s borrowing
arrangements. Restricted cash includes bank deposits and deposits in so-called “retention accounts” that are required
under the Company’s borrowing arrangements which are used to fund the loan installments coming due. The funds can only be
used for the purposes of loan repayment.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify"><b><i>(g) Accounts Receivable, net:</i></b>
The amount shown as receivables, at each balance sheet date, mainly includes receivables from charterers for hire, net of any provision
for doubtful accounts. At each balance sheet date, all potentially uncollectible accounts are assessed individually for purposes
of determining the appropriate provision for doubtful accounts. The provision established for doubtful accounts as of December
31, 2014 and 2015, is $0.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify"><b><i>(h) Inventories:</i></b> Inventories
consist of bunkers, lubricants and spare parts which are stated at the lower of cost or market on a consistent basis. Cost incurred
to bring inventories to their present location and condition is determined by the first in, first out method.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify"><b><i>(i) Insurance Claims Receivable:</i></b>
The Company records insurance claim recoveries for insured losses incurred on damage to fixed assets and for insured crew medical
expenses. Insurance claim recoveries are recorded, net of any deductible amounts, at the time the Company’s fixed assets
suffer insured damages or when crew medical expenses are incurred, recovery is probable under the related insurance policies and
the claim is not subject to litigation.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify"><b><i>(j) Vessels, Net:</i></b> Vessels
are stated at cost, which consists of the contract price and any material expenses incurred upon acquisition (initial repairs,
improvements and delivery expenses, interest and on-site supervision costs incurred during the construction periods). Subsequent
expenditures for conversions and major improvements are also capitalized when they appreciably extend the life, increase the earning
capacity or improve the efficiency or safety of the vessels; otherwise these amounts are charged to expense as incurred.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify">The cost of each of the Company’s
vessels is depreciated from the date of acquisition on a straight-line basis over the vessel’s remaining estimated economic
useful life, after considering the estimated residual value which is equal to the product of vessels’ lightweight tonnage
and estimated scrap rate, which up until December 31, 2014, was estimated to be approximately $0.250 per lightweight ton. In order
to align the scrap rate estimates with the current historical average scrap rate, effective from January 1, 2015, the Company adjusted
the estimated scrap rate used to calculate the vessels' salvage value from $0.250 to $0.300 per lightweight ton. The impact of
the increase in the estimated scrap rate is a decrease in depreciation expense prospectively. The effect of this change in accounting
estimate, which did not require retrospective adoption as per ASC 250 "Accounting Changes and Error Corrections," was
to decrease depreciation expense by $5,388 and increase net income by $5,388 or $0.07 per common share, basic and diluted , for
the year ended December 31, 2015.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify">Management estimates the useful life
of the Company’s vessels to be 30 years from the date of initial delivery from the shipyard. Secondhand vessels are depreciated
from the date of their acquisition through their remaining estimated useful life. When regulations place limitations over the ability
of a vessel to trade on a worldwide basis, its remaining useful life is adjusted at the date such regulations are adopted.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify"><b><i>(k) Accrued Charter Revenue/Unearned
Revenue:</i></b> The Company records identified assets or liabilities associated with the acquisition of a vessel at fair value,
determined by reference to market data. The Company values any asset or liability arising from the market value of the time charters
assumed when a vessel is acquired from entities that are not under common control. This policy does not apply when a vessel is
acquired from entities that are under common control. The amount to be recorded as an asset or liability at the date of vessel
delivery is based on the difference between the current fair market value of the charter and the net present value of future contractual
cash flows. When the present value of the contractual cash flows of the time charter assumed is greater than its current fair value,
the difference is recorded as accrued charter revenue. When the opposite situation occurs, any difference, capped to the vessel’s
fair value on a charter free basis, is recorded as unearned revenue. Such assets and liabilities, respectively, are amortized as
a reduction of, or an increase in, revenue over the period of the time charter assumed.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify"><b><i>(l) Impairment of Long-Lived
Assets:</i></b> The Company uses ASC 360 “Property plant and equipment”, which addresses financial accounting and reporting
for the impairment or disposal of long-lived assets. The standard requires that long-lived assets and certain identifiable intangibles
held and used by an entity be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount
of the assets may not be recoverable.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify">As of December 31, 2014 and 2015, the
Company concluded that, as conditions in the worldwide shipping industry remain depressed, indicators existed which triggered the
existence of potential impairment of its long-lived assets. As a result, the Company performed an impairment assessment of the
Company’s long-lived assets by comparing the undiscounted projected net operating cash flows for each vessel to its respective
carrying value. The Company’s strategy is mainly to charter its vessels under long-term, fixed or variable rate time charters,
providing the Company with contracted future cash flows.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify">In developing estimates of future undiscounted
cash flows, the Company makes assumptions and estimates about the vessels’ future performance, with the significant assumptions
being related to time charter rates, vessels’ operating expenses, vessels’ capital expenditures, vessels’ residual
value, fleet utilization and the estimated remaining useful life of each vessel. The assumptions used to develop estimates of future
undiscounted cash flows are based on historical trends as well as future expectations.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify">The Company determines undiscounted
projected net operating cash flows for each vessel and compares it to the vessel’s carrying value. To the extent impairment
indicators are present, the undiscounted projected net operating cash flows are determined by considering the charter revenues
from existing time charters for the fixed fleet days and an estimated daily time charter rate for the unfixed days (based on the
most recent ten year historical average rates) over the remaining estimated life of the vessel assumed to be 30 years from the
delivery of the vessel from the shipyard, expected outflows for vessels’ operating expenses assuming an expected increase
in expenses based on the Company’s historical data and an average inflation rate of 2.76% (in line with the average world
Consumer Price Index forecasted), planned dry-docking and special survey expenditures, management fees expenditures and fleet utilization
of 99.2% (excluding the scheduled off-hire days for planned dry-dockings and special surveys which are determined separately ranging
from 16 to 30 days depending on the size and age of each vessel) based on historical experience. The Company considers the most
recent ten year historical average rates to be a reasonable estimation of expected future charter rates over the remaining useful
life of the Company's vessels since such historical average represents a full shipping cycle that captures the highs and lows of
the market. The Company utilizes the standard deviation in order to eliminate the outliers in the period before computing the historic
ten year average rates. The salvage value used in the impairment test is estimated at approximately $0.300 per light weight ton
in accordance with the vessels’ depreciation policy.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify">The Company’s assessment concluded
that no impairment of vessels existed as of December 31, 2013, 2014 and 2015, as the undiscounted projected net operating cash
flows per vessel exceeded the carrying value of each vessel. No impairment loss was recorded in 2013, 2014 or 2015.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify"><b><i>(m) Accounting for Special Survey
and Dry-docking Costs:</i></b> The Company follows the deferral method of accounting for special survey and dry-docking costs
whereby actual costs incurred are deferred and are amortized on a straight-line basis over the period through the date the next
survey is scheduled to become due. Costs deferred are limited to actual costs incurred at the yard and parts used in the dry-docking
or special survey. If a survey is performed prior to the scheduled date, the remaining unamortized balances are immediately written
off. Unamortized balances of vessels that are sold are written-off and included in the calculation of the resulting gain or loss
in the period of the vessel’s sale. Furthermore, unamortized dry-docking and special survey balances of vessels that are
classified as Assets held for sale and are not recoverable as of the date of such classification are immediately written-off to
the consolidated statement of income.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify"><b><i>(n) Financing Costs:</i></b>
Costs associated with new loans or refinancing of existing loans, including fees paid to lenders or required to be paid to third
parties on the lender’s behalf for obtaining new loans or refinancing existing loans, are recorded as deferred charges. Such
fees are deferred and amortized to interest and finance costs during the life of the related debt using the effective interest
method. Unamortized fees relating to loans repaid or refinanced, meeting the criteria of debt extinguishment, are expensed in the
period the repayment or refinancing is made.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify"><b><i>(o) Concentration of Credit Risk:</i></b>
Financial instruments, which potentially subject the Company to significant concentrations of credit risk, consist principally
of cash and cash equivalents, accounts receivable (included in current and non-current assets), investments in affiliates, equity
securities, debt securities and derivative contracts (interest rate swaps and foreign currency contracts). The Company places its
cash and cash equivalents, consisting mostly of deposits, with high credit rated financial institutions. The Company performs periodic
evaluations of the relative credit standing of those financial institutions. The Company is exposed to credit risk in the event
of non-performance by counterparties to derivative instruments; however, the Company limits its exposure by diversifying among
counterparties with high credit ratings. The Company limits its credit risk with accounts receivable, investments in affiliates
and equity and debt securities by performing ongoing credit evaluations of its customers’, affiliates’ and investees’
financial condition and generally does not require collateral for its accounts receivable.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify"><b><i>(p) Voyage Revenues:</i></b>
Voyage revenues are generated from time charter agreements and are usually paid 15 days in advance. Time charter agreements with
the same charterer are accounted for as separate agreements according to the terms and conditions of each agreement. Time charter
revenues over the term of the charter are recorded as service is provided, when they become fixed and determinable.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify">Revenues from time charter agreements
providing for varying annual rates are accounted for as operating leases and thus recognized on a straight-line basis as the average
revenue over the rental periods of such agreements, as service is performed. A voyage is deemed to commence upon the completion
of discharge of the vessel’s previous cargo and the sea passage for the next fixed cargo and is deemed to end upon the completion
of discharge of the current cargo, provided an agreed non-cancelable charter agreement between the Company and the charterer is
in existence, the charter rate is fixed or determinable and collectability is reasonably assured. Unearned revenue includes cash
received prior to the balance sheet date for which all criteria to recognize as revenue have not been met, including any unearned
revenue resulting from charter agreements providing for varying annual rates, which are accounted for on a straight-line basis.
Unearned revenue also includes the unamortized balance of the liability associated with the acquisition of second-hand vessels
with time charters attached which were acquired at values below fair market value at the date the acquisition agreement is consummated.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify">Revenues for 2013, 2014 and 2015, derived
from significant charterers individually accounting for 10% or more of revenues (in percentages of total revenues) were as follows:</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td colspan="3"> </td><td style="font: bold 8pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td colspan="3" style="font: bold 8pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">2013</td><td style="font: bold 8pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td colspan="3" style="font: bold 8pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">2014</td><td style="font: bold 8pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td colspan="3" style="font: bold 8pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">2015</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 1%; font: bold 8pt Times New Roman, Times, Serif; text-align: left"> </td><td style="width: 20%; font: bold 8pt Times New Roman, Times, Serif; text-align: left"><font style="font-size: 8pt"><b>A</b></font></td><td style="width: 1%; font: bold 8pt Times New Roman, Times, Serif; text-align: left"> </td><td style="width: 5%; font: 8pt Times New Roman, Times, Serif"> </td>
<td style="width: 1%; font: 8pt Times New Roman, Times, Serif; text-align: left"> </td><td style="width: 19%; font: 8pt Times New Roman, Times, Serif; text-align: right">24</td><td style="width: 1%; font: 8pt Times New Roman, Times, Serif; text-align: left">%</td><td style="width: 5%; font: 8pt Times New Roman, Times, Serif"> </td>
<td style="width: 1%; font: 8pt Times New Roman, Times, Serif; text-align: left"> </td><td style="width: 19%; font: 8pt Times New Roman, Times, Serif; text-align: right">29</td><td style="width: 1%; font: 8pt Times New Roman, Times, Serif; text-align: left">%</td><td style="width: 5%; font: 8pt Times New Roman, Times, Serif"> </td>
<td style="width: 1%; font: 8pt Times New Roman, Times, Serif; text-align: left"> </td><td style="width: 19%; font: 8pt Times New Roman, Times, Serif; text-align: right">31</td><td style="width: 1%; font: 8pt Times New Roman, Times, Serif; text-align: left">%</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font: bold 8pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: bold 8pt Times New Roman, Times, Serif; text-align: left"><font style="font-size: 8pt"><b>B</b></font></td><td style="font: bold 8pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 8pt Times New Roman, Times, Serif"> </td>
<td style="font: 8pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 8pt Times New Roman, Times, Serif; text-align: right">31</td><td style="font: 8pt Times New Roman, Times, Serif; text-align: left">%</td><td style="font: 8pt Times New Roman, Times, Serif"> </td>
<td style="font: 8pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 8pt Times New Roman, Times, Serif; text-align: right">26</td><td style="font: 8pt Times New Roman, Times, Serif; text-align: left">%</td><td style="font: 8pt Times New Roman, Times, Serif"> </td>
<td style="font: 8pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 8pt Times New Roman, Times, Serif; text-align: right">26</td><td style="font: 8pt Times New Roman, Times, Serif; text-align: left">%</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font: bold 8pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: bold 8pt Times New Roman, Times, Serif; text-align: left"><font style="font-size: 8pt"><b>C</b></font></td><td style="font: bold 8pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 8pt Times New Roman, Times, Serif"> </td>
<td style="font: 8pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 8pt Times New Roman, Times, Serif; text-align: right">16</td><td style="font: 8pt Times New Roman, Times, Serif; text-align: left">%</td><td style="font: 8pt Times New Roman, Times, Serif"> </td>
<td style="font: 8pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 8pt Times New Roman, Times, Serif; text-align: right">14</td><td style="font: 8pt Times New Roman, Times, Serif; text-align: left">%</td><td style="font: 8pt Times New Roman, Times, Serif"> </td>
<td style="font: 8pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 8pt Times New Roman, Times, Serif; text-align: right">13</td><td style="font: 8pt Times New Roman, Times, Serif; text-align: left">%</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font: bold 8pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: bold 8pt Times New Roman, Times, Serif; text-align: left"><font style="font-size: 8pt"><b>D</b></font></td><td style="padding-bottom: 1pt; font: bold 8pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 8pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font: 8pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 8pt Times New Roman, Times, Serif; text-align: right">13</td><td style="padding-bottom: 1pt; font: 8pt Times New Roman, Times, Serif; text-align: left">%</td><td style="font: 8pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font: 8pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 8pt Times New Roman, Times, Serif; text-align: right">18</td><td style="padding-bottom: 1pt; font: 8pt Times New Roman, Times, Serif; text-align: left">%</td><td style="font: 8pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font: 8pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 8pt Times New Roman, Times, Serif; text-align: right">18</td><td style="padding-bottom: 1pt; font: 8pt Times New Roman, Times, Serif; text-align: left">%</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font: bold 8pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: bold 8pt Times New Roman, Times, Serif; text-align: left"><font style="font-size: 8pt"><b>Total</b></font></td><td style="padding-bottom: 1pt; font: bold 8pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 8pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font: 8pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 8pt Times New Roman, Times, Serif; text-align: right">84</td><td style="padding-bottom: 1pt; font: 8pt Times New Roman, Times, Serif; text-align: left">%</td><td style="font: 8pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font: 8pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 8pt Times New Roman, Times, Serif; text-align: right">87</td><td style="padding-bottom: 1pt; font: 8pt Times New Roman, Times, Serif; text-align: left">%</td><td style="font: 8pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font: 8pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 8pt Times New Roman, Times, Serif; text-align: right">88</td><td style="padding-bottom: 1pt; font: 8pt Times New Roman, Times, Serif; text-align: left">%</td></tr>
</table>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify"><b><i> </i></b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify"><b><i>(q) Voyage Expenses:</i></b>
Voyage expenses primarily consist of port, canal and bunker expenses that are unique to a particular charter and are paid for by
the charterer under time charter arrangements or by the Company under voyage charter arrangements and commissions and fees, which
are always paid for by the Company, regardless of the charter type. All voyage and vessel operating expenses are expensed as incurred,
except for commissions. Commissions are deferred over the related voyage charter period to the extent revenue has been deferred
since commissions are earned as the Company’s revenues are earned.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify"><b><i>(r) Repairs and Maintenance:</i></b>
All repair and maintenance expenses, including underwater inspection expenses, are expensed in the year incurred. Such costs are
included in vessel operating expenses in the accompanying consolidated statements of income.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify"><b><i>(s) Derivative Financial Instruments:</i></b>
The Company enters into interest rate swap contracts to manage its exposure to fluctuations of interest rate risks associated with
specific borrowings. Interest rate differentials paid or received under these swap agreements are recognized as part of the interest
expense related to the hedged debt. All derivatives are recognized in the consolidated financial statements at their fair value.
On the inception date of the derivative contract, the Company designates the derivative as a hedge of a forecasted transaction
or the variability of cash flow to be paid (“cash flow” hedge). Changes in the fair value of a derivative that is qualified,
designated and highly effective as a cash flow hedge are recorded in the consolidated statement of comprehensive income until earnings
are affected by the forecasted transaction or the variability of cash flow and are then reported in earnings. Changes in the fair
value of undesignated derivative instruments and the ineffective portion of designated derivative instruments are reported in earnings
in the period in which those fair value changes have occurred. Realized gains or losses on early termination of the derivative
instruments are also classified in earnings in the period of termination of the respective derivative instrument. The Company may
re-designate an undesignated hedge after its inception as a hedge but then will consider its non-zero value at re-designation in
its assessment of effectiveness of the cash flow hedge.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify">The Company formally documents all
relationships between hedging instruments and hedged items, as well as the risk-management objective and strategy for undertaking
various hedge transactions.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify">This process includes linking all derivatives
that are designated as cash flow hedges to specific forecasted transactions or variability of cash flow.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify">The Company also formally assesses,
both at the hedge’s inception and, on an ongoing basis, whether the derivatives that are used in hedging transactions are
highly effective in offsetting changes in cash flow of hedged items. The Company considers a hedge to be highly effective if the
change in fair value of the derivative hedging instrument is within 80% to 125% of the opposite change in the fair value of the
hedged item attributable to the hedged risk. When it is determined that a derivative is not highly effective as a hedge or that
it has ceased to be a highly effective hedge, the Company discontinues hedge accounting prospectively, in accordance with ASC 815
“Derivatives and Hedging”.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify">The Company also enters into forward
exchange rate contracts to manage its exposure to currency exchange risk on certain foreign currency liabilities. The Company has
not designated these forward exchange rate contracts for hedge accounting.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify"><b><i>(t) Earnings per Share:</i></b>
Basic earnings per share are computed by dividing net income attributable to common equity holders by the weighted average number
of shares of common stock outstanding during the year. Diluted earnings per share reflects the potential dilution that could occur
if securities or other contracts to issue common stock were exercised. The Company had no dilutive securities outstanding during
the three-year period ended December 31, 2015. Earnings per share attributable to common equity holders are adjusted by the contractual
amount of dividends related to the preferred stock holders that accrue for the period.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify"><b><i>(u) Fair Value Measurements:</i></b>
The Company adopted, as of January 1, 2008, ASC 820 “Fair Value Measurements and Disclosures”, which defines and provides
guidance as to the measurement of fair value. This standard creates a hierarchy of measurement and indicates that, when possible,
fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between
market participants. The fair value hierarchy gives the highest priority (Level 1) to quoted prices in active markets and the lowest
priority (Level 3) to unobservable data, for example, the reporting entity’s own data. Under the standard, fair value measurements
are separately disclosed by level within the fair value hierarchy. The standard applies when assets or liabilities in the financial
statements are to be measured at fair value, but does not require additional use of fair value beyond the requirements in other
accounting principles (Notes 18 and 19).</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify">ASC 825 “Financial Instruments”,
permits companies to report certain financial assets and financial liabilities at fair value. ASC 825 was effective for the Company
as of January 1, 2008, at which time the Company could elect to apply the standard prospectively and measure certain financial
instruments at fair value. The Company has evaluated the guidance contained in ASC 825, and has elected not to report any existing
financial assets or liabilities at fair value that are not already so reported; therefore, the adoption of the statement had no
impact on its financial position and results of operations. The Company retains the ability to elect the fair value option for
certain future assets and liabilities acquired under this standard.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify"><b><i>(v) Segment Reporting:</i></b>
The Company reports financial information and evaluates its operations by charter revenues and not by the length of ship employment
for its customers, i.e., spot or time charters. The Company does not use discrete financial information to evaluate the operating
results for each such type of charter. Although revenue can be identified for these types of charters, management cannot and does
not identify expenses, profitability or other financial information for these charters. Furthermore, when the Company charters
a vessel to a charterer, the charterer is free to trade the vessel worldwide (subject to certain agreed exclusions) and, as a result,
the disclosure of geographic information is impracticable. As a result, management, including the chief operating decision maker,
reviews operating results solely by revenue per day and operating results of the fleet and thus the Company has determined that
it operates under one reportable segment.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify"><b><i>(w) Investments in Affiliates:</i></b>
Investments in the common stock of entities, in which the Company has significant influence over operating and financial policies,
are accounted for using the equity method. Under this method, the investment in the affiliate is initially recorded at cost and
is adjusted to recognize the Company’s share of the earnings or losses of the investee after the acquisition date and is
adjusted for impairment whenever facts and circumstances indicate that a decline in fair value below the cost basis is other than
temporary. The amount of the adjustment is included in the determination of net income / (loss). Dividends received from an affiliate
reduce the carrying amount of the investment. When the Company’s share of losses in an affiliate equals or exceeds its interest
in the affiliate, the Company does not recognize further losses unless the Company has incurred obligations or made payments on
behalf of the affiliate.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify"><b><i>(x) Capital leases: </i></b>Financial
Accounting Standards Board (“FASB”) ASC 840 classifies leases as capital or operating. Capital leases are accounted
for as the acquisition of an asset and the incurrence of an obligation by the lessee and as a sale or financing by the lessor.
All other leases are accounted for as operating leases. The determination of whether an arrangement is (or contains) a capital
lease is based on the substance of the arrangement at the inception date and is assessed in accordance with the criteria set in
ASC 840-10-25-1.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify">Capital leases are capitalized at the
commencement of the lease at the lower between the fair value of the leased asset and the present value of the minimum lease payments.
Lease payments are apportioned between finance charges and reduction of the lease liability. Finance charges are recognized in
finance costs in the consolidated statement of income. The lease payments are allocated between liability and finance costs to
achieve a constant rate on the capital balance outstanding. If the lease agreement transfers the ownership of the leased asset
to the lessee, then the asset is depreciated over its useful economic life (estimated at 30 years), otherwise it is depreciated
over the lease term.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify">For sale and lease back transactions,
when the fair value of the asset sold is more than its carrying amount, any indicated loss on the sale is in substance a prepayment
of rent and thus, in accordance with ASC 840-40-35-4, the Company defers this prepaid rental and amortizes it over the lease term.
In case the fair value of the asset sold is less than its carrying amount, any indicated loss on the sale is recognized in the
consolidated statement of income as incurred.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify">Operating lease payments are recognized
as an operating expense in the consolidated statement of income on a straight-line basis over the lease term.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify"><b><i>(y) Investments in Equity and
Debt Securities:</i></b> The Company classifies debt securities and equity securities pursuant to the provisions of ASC 320-10-25-1
“Investments–Debt and Equity Securities”, into one of the following three categories:</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify">a. Trading securities: If the Company
acquires a security with the intent of selling it in the near term, the security is classified as trading,</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify">b. Available-for-sale securities: Investments
in debt securities and equity securities that have readily determinable fair values not classified as trading securities or as
held-to-maturity securities are classified as available-for-sale securities and,</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify">c. Held-to-maturity securities: Investments
in debt securities are classified as held-to-maturity only if the Company has the positive intent and ability to hold these securities
to maturity.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify">In order to determine the applicable
category, the Company considers the following: (i) if the Company intends to sell the security, (ii) whether it is more likely
than not that the Company will be required to sell the security before the recovery of its (entire) cost, and (iii) whether the
security has a readily determinable fair value or not.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify">Debt and equity securities which are
decided on inception to be accounted for as trading securities or available-for-sale securities are initially recognized at cost
and subsequently are measured at fair value. Declines in the fair value of trading securities are recognized in earnings, while
declines in the fair value of available-for-sale securities are recorded in Other Comprehensive Income and affect earnings when
the securities are disposed. Held-to-maturity debt securities are initially recognized at cost and subsequently are measured at
amortized cost, less impairment. The amortized cost is adjusted for amortization of premiums and accretion of discounts to maturity.
Management evaluates debt securities held-to-maturity for other than temporary impairment at each reporting date. In evaluating
whether a decline in value is other than temporary, the Company considers several factors including, but not limited, to the following:
(i) the extent of the duration of the decline; (ii) the reasons for the decline in value and (iii) the financial condition of and
near-term prospects of the issuer. An investment in debt or equity securities is considered impaired if the fair value of the investment
is less than its carrying value, in which case, the Company recognizes in earnings an impairment loss equal to the difference between
their carrying value and their fair value.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify">Equity securities with no readily determinable
fair value, which relate to an entity in which the Company does not have the ability to exercise significant influence, are accounted
for pursuant to the provisions of ASC 325-20 “Investments - Other–Cost Method Investments”. The Company initially
recognizes such equity securities at cost. Subsequently, any dividends distributed by the investee to the Company are recognized
as income when received, but only to the extent they represent net accumulated earnings of the investee since the Company’s
initial recognition of the investment. Net accumulated earnings are recognized as income by the Company only if they are distributed
to the investor as dividends. Any dividends received in excess of net accumulated earnings are recognized as a reduction in the
carrying amount of the investment. Management evaluates the equity securities for other-than-temporary-impairment at each reporting
date. An investment in cost method equity securities is considered impaired if the fair value of the investment is less than its
carrying value, in which case the Company recognizes in earnings an impairment loss equal to the difference between their carrying
value and their fair value. Consideration is given to significant deterioration in the earnings performance, or business prospects
of the investee, significant adverse change in the regulatory, economic, or technological environment of the investee, significant
adverse change in the general market condition in which the investee operates, as well as factors that raise significant concerns
about the investee’s ability to continue as a going concern.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify"><b><i>(z) Stock Based Compensation:</i></b>
The Company accounts for stock based payment awards granted to Costamare Shipping Company S.A. and Costamare Shipping Services
Ltd. (Note 3 and 14a), for the services provided by these entities, following the guidance in ASC 505-50 “Equity Based Payments
to Non-Employees”. The fair value of the stock based payment awards is recognized in the line item General and administrative
expenses - related parties in the consolidated statements of income.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify"><b>New accounting pronouncements</b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify"><b><i>Debt issuance costs</i></b>:
In April 2015, Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”)
No. 2015-03 – Interest – Imputation of Interest to simplify the presentation of debt issuance costs. Current guidance
generally requires entities to capitalize costs paid to third parties that are directly related to issuing debt and that otherwise
wouldn’t be incurred and present those amounts separately as deferred charges (i.e., assets). However, the discount or premium
resulting from the difference between the net proceeds received upon debt issuance and the amount payable at maturity is presented
as a direct deduction from or an addition to the face amount of the debt. The new guidance simplifies financial reporting by eliminating
the different presentation requirements for debt issuance costs and debt discounts or premiums.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify">The guidance is effective for public
business entities for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within
those fiscal years. Upon adoption, an entity must apply the new guidance retrospectively to all prior periods presented in the
financial statements. Early adoption is permitted. The Company is planning to apply ASU No. 2015-03 as of January 1, 2016.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><br />
<b><i>Inventories:</i></b> In July 2015, the FASB issued ASU No. 2015-11, Simplifying the Measurement of Inventory to simplify
the measurement of inventory using first-in, first out (FIFO) or average cost method. According to this ASU an entity should measure
inventory at the lower of cost and net realizable value. Net realizable value is the estimated selling price less reasonably predictable
costs of completion, disposal and transportation. This update is effective for public entities with reporting periods beginning
after December 15, 2016. Early adoption is permitted. The Company believes that the implementation of this update will not
have any material impact on its financial statements and has not elected the early adoption.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Consolidation</i></b>: In February 2015,
the FASB issued ASU No. 2015-02 Consolidation (Topic 810), Amendments to the Consolidation Analysis. The guidance eliminates the
deferral of FAS 167, which has allowed entities with interests in certain investment funds to follow the previous consolidation
guidance in FIN 46(R), and makes other changes to both the variable interest model and the voting model. While the guidance is
aimed at asset managers, it will affect all reporting entities that have variable interests in other legal entities (e.g., limited
partnerships, similar entities and certain corporations). In some cases, consolidation conclusions will change. In other cases,
reporting entities will need to provide additional disclosures about entities that currently aren’t considered variable interest
entities (“VIEs”) but will be considered VIEs under the new guidance provided they have a variable interest in those
VIEs. The guidance is effective for public business entities for fiscal years, and for interim periods within those fiscal years,
beginning after December 15, 2015. Early adoption is permitted, including adoption in an interim period. A reporting entity must
apply the amendments using a modified retrospective approach by recording a cumulative-effect adjustment to equity as of the beginning
of the period of adoption or apply the amendments retrospectively. The Company is currently evaluating the impact, if any, of the
adoption of this new standard.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Revenue from Contracts with Customers:</i></b>
On August 12, 2015, the FASB issued ASU 2015-14, “Revenue from Contracts with Customers”, which amends ASU No.
2014-09 (issued by the FASB on May 28, 2014 and which outlines a single comprehensive model for entities to use in accounting for
revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific
guidance. This standard is effective for public entities with reporting periods beginning after December 15, 2017. Early application
is permitted only as of annual reporting periods (including interim reporting periods within those periods) beginning after December 15,
2016. The Company is currently evaluating the impact, if any, of the adoption of this new standard.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 2pt 0"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 2pt 0"><b><i>Leases:</i></b> In February 2016, the FASB issued ASU No.
2016-02 “Leases”, which improves transparency and comparability among companies by requiring lessees to recognize
a lease liability and a corresponding lease asset for virtually all lease contracts. The new lease standard does not substantially
change lessor accounting. It also requires additional disclosures about leasing arrangements. For public companies, the
new standard is effective for interim and annual periods beginning after December 15, 2018 and requires a modified retrospective
approach to adoption. Early adoption is permitted. The Company has not yet determined what impact, if any, the adoption of
the new standard will have on its consolidated financial position, results of operations or cash flows.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 2pt 0"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 2pt 0"><b><i>Going Concern: </i></b>In August 2014, the FASB issued
ASU No. 2014-15– “Presentation of Financial Statements - Going Concern”. ASU 2014-15 provides guidance about
management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as
a going concern and to provide related footnote disclosures. ASU 2014-15 requires an entity’s management to evaluate at each
reporting period based on the relevant conditions and events that are known at the date the financial statements are issued, whether
there are conditions or events that raise substantial doubt about the entity’s ability to continue as a going concern within
one year after the date that the financial statements are issued and to disclose the necessary information. ASU 2014-15 is effective
for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. Early application
is permitted.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify"><b><i>(a)</i> Costamare Shipping Company
S.A.<i> (the “Manager” or “Costamare Shipping”)</i> and Costamare Shipping Services Ltd. (<i>“Costamare
Services”):</i></b> Costamare Shipping is a ship management company wholly-owned by Mr. Konstantinos Konstantakopoulos, the
Company’s Chief Executive Officer and, as such, is not part of the consolidated group of the Company, but is a related party.
Costamare Shipping provides the Company with general administrative services and certain commercial and technical services.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify">Costamare Shipping, itself or through
Shanghai Costamare Ship Management Co., Ltd. (“Shanghai Costamare”), which is also controlled by Mr. Konstantakopoulos,
or through or together with third party sub-managers, provides technical, crewing, commercial, provisioning, bunkering, sale and
purchase, chartering, accounting, insurance and administrative services in exchange for a daily fee for each containership.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify">On March 3, 2015, the Company entered
into an amended and restated management agreement with Costamare Shipping (the “Group Management Agreement”) which,
among other things, extended the term of the agreement such that it automatically renewed for 10 consecutive one-year periods until
December 31, 2025 (rather than five consecutive periods until December 31, 2020), removed the annual 4% increase of the fee payable
in respect of each containership managed by Costamare Shipping and in respect of the flat fee for the supervision of each newbuild
ordered by the Company and, beginning in the first quarter of 2015, provided for an annual fee to Costamare Shipping of $2,500
and 598,400 shares (which is equal to 0.8% of the issued and outstanding Company common stock as of January 1, 2015) payable quarterly
in arrears. No separate payment is made for the services of the Company’s executive officers (prior to 2015, the Company
paid Costamare Shipping $1,000 annually for such services). The Group management Agreement has been terminated on November 2, 2015.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On November 2, 2015, the Company entered into
a Framework Agreement with Costamare Shipping (the “Framework Agreement”) and its vessel-owning subsidiaries entered
into a Services Agreement with Costamare Services (the “Services Agreement”), a company controlled by the Company’s
Chairman and Chief Executive Officer and members of his family. On November 27, 2015, the Company amended and restated the Registration
Rights Agreement entered into in connection with the Company’s initial public offering, to extend registration rights to
Costamare Shipping and Costamare Services each of which have received or may receive shares of our common stock as fee compensation
under the Group Management Agreement (until November 2, 2015) or the Services Agreement.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify">Under the Group Management Agreement
until November 2, 2015 and the Framework Agreement and the Services Agreement from November 2, 2015, Costamare Shipping and Costamare
Services received (i) for each containership which is not subject to a bareboat charter a daily fee of $0.956 since January 1,
2015 ($0.919 for 2014) and for each containership subject to a bareboat charter a daily fee of $0.478 since January 1, 2015 ($0.460
for 2014), in each case prorated for the calendar days the Company owned each containership and for the three-month period following
the date of the sale of a vessel, (ii) a flat fee of $787.4 for the supervision of the construction of any newbuild vessel contracted
by the Company, (iii) a fee of 0.75% on all gross freight, demurrage, charter hire, ballast bonus or other income earned with respect
to each containership in the Company’s fleet and, (iv) an annual fee of $2,500 and 598,400 shares as noted above. Fees under
(i) and (ii) may be annually adjusted upwards to reflect any strengthening of the Euro against the U.S. dollar and/or material
unforeseen cost increases.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify">After the initial term of the Framework
Agreement and the Services Agreement, which expired on December 31, 2015, the Company is able to terminate both agreements, subject
to a termination fee, by providing written notice to Costamare Shipping or Costamare Services, as applicable, at least 12 months
before the end of the subsequent one-year term. The termination fee is equal to (a) the number of full years remaining prior to
December 31, 2025, times (b) the aggregate fees due and payable to Costamare Shipping or Costamare Services, as applicable, during
the 12-month period ending on the date of termination (without taking into account any reduction in fees under the Framework Agreement
to reflect that certain obligations have been delegated to a sub-manager or a sub-provider, as applicable); provided that the termination
fee will always be at least two times the aggregate fees over the 12-month period described above.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify">On January 7, 2013, Costamare Shipping
entered into a co-operation agreement (the “Co-operation Agreement”) with third-party ship managers V.Ships Greece
Ltd. (“V.Ships Greece”), pursuant to which the two companies established a ship management cell (the “Cell”)
under V.Ships Greece. Since April 2013, the Cell provides technical, crewing, provisioning, bunkering, sale and purchase and accounting
services, as well as certain commercial and insurance services to certain of the Company’s container vessels, pursuant to
separate management agreements entered into between V.Ships Greece and the ship-owning company of the respective container vessel,
for a daily management fee.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify">The Cell also offers ship management
services to third-party owners. Costamare Shipping passes to the Company the net profit, if any, it receives pursuant to the Co-operation
Agreement as a refund or reduction of the management fees payable by the Company to Costamare Shipping under the Group Management
Agreement until November 2, 2015 and the Framework Agreement from November 2, 2015 onwards. The net profits earned during the year
ended December 31, 2014 and 2015, amounted to $392 and $718, respectively, and are included as a reduction in management fees–related
parties in the accompanying consolidated statements of income. As at December 31, 2015, the Cell provided technical, crewing, provisioning,
bunkering, sale and purchase and accounting services, as well as certain commercial management services to 19 of Costamare’s
vessels.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify">Management fees charged by Costamare
Shipping in the years ended December 31, 2013, 2014 and 2015, amounted to $15,570, $18,642 and $19,411, respectively and are included
in Management fees-related parties in the accompanying consolidated statements of income. In addition, Costamare Shipping and Costamare
Services as from November 2, 2015, charged (i) $3,673 for the year ended December 31, 2015 ($3,629 for the year ended December
30, 2014 and $3,139 for the year ended December 30, 2013), representing a fee of 0.75% on all gross revenues, as provided in the
Group Management Agreement and from November 2, 2015, the Framework Agreement and the Services Agreement, as applicable, which
is separately reflected as Voyage expenses-related parties in the accompanying consolidated statement of income for the year ended
December 31, 2015, (ii) $2,500, which is included in General and administrative expenses – related parties in the accompanying
consolidated statement of income for the year ended December 31, 2015 ($1,000 for the year ended December 31, 2014 and $1,000 for
the year ended December 31, 2013) and (iii) $8,623 representing the fair value of 598,400 shares, which is included in General
and administrative expenses - related parties in the accompanying consolidated statement of income for the year ended December
31, 2015. During 2014, the Manager charged $1,050 supervision fees for three newbuild vessels, which were included in Advances
for vessels acquisition. Furthermore, in accordance with the management agreement with V.Ships Greece, V.Ships Greece has been
provided with the amount of $1,425 ($75 per vessel) as working capital security, which is included in Accounts receivable, non-current,
in the accompanying 2014 and 2015 consolidated balance sheets.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify">During the years ended December 31,
2013, 2014 and 2015, the Manager charged in aggregate to the companies established pursuant to the Framework Agreement (Notes 8
and 9) the amount of $1,070, $1,572 and $1,856, respectively for services provided in accordance with the respective management
agreements.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify">The balance due from the Manager at
December 31, 2014 and 2015, amounted to $576 and $3,728, respectively, and is included in Due from related parties in the accompanying
consolidated balance sheets. The balance due to Costamare Services at December 31, 2015, amounted to $371 and is reflected as Due
to related parties in the accompanying 2015 consolidated balance sheet.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify"><b><i>(b) Ciel Shipmanagement S.A.:</i></b>
CIEL, a company incorporated in the Republic of Liberia, is wholly-owned by Mr. Konstantinos Konstantakopoulos, the Company’s
Chairman and Chief Executive Officer. CIEL is not part of the consolidated group of the Company. CIEL provided the Company’s
vessels, through to April 2013, certain ship management services such as technical support and maintenance, financial and accounting
services. From April 2013 until November 2, 2015, CIEL provided services in respect of the <i>Rena</i>. Management fees charged
by CIEL in the years ended December 31, 2013, 2014 and 2015, amounted to $1,010, $219 and $184, respectively and are included in
Management fees-related parties in the accompanying consolidated statements of income. The balance due from CIEL at December 31,
2014 and 2015 amounted to $593 and $606, respectively and is included in Due from related parties in the accompanying consolidated
balance sheets.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify"><b><i>(c) Shanghai Costamare Ship
Management Co. Ltd.:</i></b> Shanghai Costamare is owned (indirectly) 70% by the Company’s Chairman and Chief Executive
Officer and 30% (indirectly) by Shanghai Costamare’s General Manager, Mr. Shen Xiao Dong. Shanghai Costamare is a company
incorporated in the Peoples’ Republic of China and is not part of the consolidated group of the Company but is an affiliated
manager. The technical, crewing, provisioning, bunkering, sale and purchase and accounting services, as well as certain commercial
services of certain of the Company’s vessels have been subcontracted from the Manager to Shanghai Costamare. As of December
31, 2015, Shanghai Costamare provided such services to thirteen (eleven as of December 31, 2014) of the Company’s containerships.
There was no balance due from/to Shanghai Costamare at both December 31, 2014 and 2015.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify">As of July 16, 2014, Zim Integrated
Services (“Zim”) and its creditors including vessel and container lenders, ship-owners, shipyards, unsecured lenders
and bond holders, entered into definitive documentation to restructure its debt. Based on this agreement, the Company received
equity securities representing 1.2% of Zim’s equity and $8,229 aggregate principal amount of unsecured interest bearing Zim
notes maturing in 2023 consisting of $1,452 of 3.0% Series 1 Notes due 2023 amortizing subject to available cash flows in accordance
with a corporate mechanism and $6,777 of 5.0% Series 2 Notes due 2023 non-amortizing (of the 5% interest, 3% is payable quarterly
in cash and 2% interest is accrued quarterly with deferred cash payment on maturity) in exchange for amounts owed by Zim to the
Company under their charter agreements. The Company calculated the fair value of the instruments received by Zim based on the agreement
discussed above, available information on Zim and other similar contracts with similar terms, maturities and interest rates, and
recorded at fair value of $676 in relation to the Series 1 Notes, $3,567 in relation to the Series 2 Notes and $7,802 in relation
to its equity participation in Zim. The difference between the aggregate fair value of the debt and equity securities received
from Zim and the then net carrying value of the amounts due from Zim of $2,888 was written-off and was included in General and
administrative expenses in the 2014 consolidated statement of income.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On a quarterly basis, the Company will account
for the fair value unwinding of the Series 1 and Series 2 Notes, until the book value of the instruments equals their face value
on maturity. During the year ended December 31, 2015, the Company recorded $798 in relation to their fair value unwinding, which
is included in “Interest income” in the consolidated statement of income for the year ended December 31, 2015. The
Company has classified such debt and equity securities under other non-current assets, since it has no intention to sell the securities
in the near term. The Series 1 and Series 2 Zim Notes are carried at amortized cost in the accompanying consolidated balance sheet
as at December 31, 2015, which approximates their fair value as of such date. These financial instruments are not measured at fair
value on a recurring basis. The equity securities are carried at cost in the accompanying consolidated balance sheet as at December
31, 2015, which approximates the fair value of the instruments at inception considering that it relates to a nonmonetary exchange
(as described above). No dividends have been received from Zim since July 16, 2014. As of December 31, 2015, the Company has assessed
for other than temporary impairment of its investment in Zim and has concluded that no impairment existed.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Inventories of $11,565 and $10,578 in the accompanying
balance sheets at December 31, 2014 and 2015, respectively relate to bunkers, lubricants and spare parts.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The amounts in the accompanying consolidated
balance sheets are analyzed as follows:</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 8pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td style="text-align: justify"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Vessel Cost</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: justify; border-bottom: Black 1pt solid"><p style="font: 8pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center"><b>Accumulated</b></p> <p style="font: 8pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center"><b>Depreciation</b></p></td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: justify; border-bottom: Black 1pt solid"><p style="font: 8pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center"><b>Net Book</b></p> <p style="font: 8pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center"><b>Value</b></p></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 46%; font-weight: bold; text-align: justify; padding-bottom: 1pt; text-indent: -0.25pt">Balance, January 1, 2013</td><td style="width: 5%; font-weight: bold; padding-bottom: 1pt"> </td>
<td style="width: 1%; border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="width: 11%; border-bottom: Black 1pt solid; font-weight: bold; text-align: right">2,304,036</td><td style="width: 1%; padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="width: 5%; font-weight: bold; padding-bottom: 1pt"> </td>
<td style="width: 1%; border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="width: 11%; border-bottom: Black 1pt solid; font-weight: bold; text-align: right">(721,691</td><td style="width: 1%; padding-bottom: 1pt; font-weight: bold; text-align: left">)</td><td style="width: 5%; font-weight: bold; padding-bottom: 1pt"> </td>
<td style="width: 1%; border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="width: 11%; border-bottom: Black 1pt solid; font-weight: bold; text-align: right">1,582,345</td><td style="width: 1%; padding-bottom: 1pt; font-weight: bold; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; text-indent: -0.25pt">Depreciation</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(89,903</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(89,903</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: justify; text-indent: -0.25pt">Vessel acquisitions and other vessels’ costs</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">51,853</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">51,853</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; text-indent: -0.25pt">Transfer from advances for vessel acquisitions</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">689,112</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">689,112</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: justify; text-indent: -0.25pt">Derecognition of vessels</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(29,659</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">53</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(29,606</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; padding-bottom: 1pt; text-indent: -0.25pt">Disposals</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(54,343</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">37,930</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(16,413</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-weight: bold; text-align: justify; padding-bottom: 1pt; text-indent: -0.25pt">Balance, December 31, 2013</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">2,960,999</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">(773,611</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left">)</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">2,187,388</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; text-indent: -0.25pt">Depreciation</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(99,515</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(99,515</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: justify; text-indent: -0.25pt">Vessel acquisitions and other vessels’ costs</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">28,984</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">28,984</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; padding-bottom: 1pt; text-indent: -0.25pt">Disposals</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(36,543</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">18,506</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(18,037</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-weight: bold; text-align: justify; padding-bottom: 1pt; text-indent: -0.25pt">Balance, December 31, 2014</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">2,953,440</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">(854,620</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left">)</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">2,098,820</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; text-indent: -0.25pt">Depreciation</td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">—  </td><td style="font-weight: bold; text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(93,961</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(93,961</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: justify; text-indent: -0.25pt">Other vessels’ costs</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">2,758</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">2,758</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; padding-bottom: 1pt; text-indent: -0.25pt">Disposals</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(6,156</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">3,189</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(2,967</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-weight: bold; text-align: justify; padding-bottom: 2.5pt; text-indent: -0.25pt">Balance, December 31, 2015</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">2,950,042</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">(945,392</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">)</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">2,004,650</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td></tr>
</table>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On September 21, 2010, the Company through its
three wholly-owned subsidiaries, Adele Shipping Co., Bastian Shipping Co. and Cadence Shipping Co., contracted with a shipyard
for the construction and purchase of three newbuild vessels (Hulls H1068A, H1069A and H1070A), each of approximately 9,403 TEU
capacity at a contract price per newbuild vessel of $95,080. The newbuilds <i>MSC Azov </i>(Hull H1068A), <i>MSC Ajaccio </i>(Hull
H1069A) and <i>MSC Amalfi </i>(Hull H1070A) were delivered to the Company on January 14, 2014, March 14, 2014 and April 28, 2014,
respectively. The Company agreed with a financial institution to refinance the then outstanding balance of the loans relating to<i>
MSC Azov</i>, <i>MSC Ajaccio</i> and <i>MSC Amalfi</i> under a ten-year sale and leaseback transaction. Under the sale and leaseback
transaction, the vessels were chartered back to the Company on a bareboat basis and remained on time charter with its initial time
charterer (Note 11).</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify">During the year ended December 31,
2013, the Company took delivery from the shipyard of the seven newbuild container vessels <i>MSC Athens</i>, <i>MSC Athos</i>,
<i>Valor</i>, <i>Value</i>, <i>Valiant</i>, <i>Valence </i>and <i>Vantage</i> at an aggregate cost of $689,112. Furthermore, during
the year ended December 31, 2013, the Company acquired the four secondhand container vessels <i>Venetiko</i>, <i>Petalidi</i>,
<i>Ensenada Express </i>and <i>Padma </i>(ex. <i>X-Press Padma</i>) at an aggregate price of $51,853. On July 12, 2013, pursuant
to the Framework Deed (Notes 8 and 9), York (as defined below) participated with a 51% interest in the share capital of the ship-owning
companies of the vessels<i> Petalidi</i>, <i>Ensenada Express </i>and <i>Padma</i> (Note 9).</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify">During the year ended December 31,
2013, the Company sold for scrap the container vessels <i>MSC Washington</i>, <i>MSC Austria</i> and <i>MSC Antwerp</i> at an aggregate
price of $23,809 and recognized a net gain of $518, which is separately reflected in Gain on sale / disposal of vessels, net in
the accompanying 2013 consolidated statement of income.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify">During the year ended December 31,
2014, the Company acquired the three secondhand vessels <i>Neapolis, Areopolis</i> and <i>Lakonia </i>at an aggregate price of
$27,740.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify">During the year ended December 31,
2014, the Company sold for demolition the container vessel <i>Konstantina</i>, <i>MSC Kyoto</i> and <i>Akritas</i> at an aggregate
price of $24,329 and recognized a net gain of $2,543, which is separately reflected in Gain on sale / disposal of vessels, net
in the accompanying 2014 consolidated statement of income.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify">During the year ended December 31,
2015, the Company sold for demolition the container vessel <i>MSC Challenger</i> at a price of $5,022 and recognized a gain of
$1,688, which is separately reflected in Gain on sale / disposal of vessels, net in the accompanying 2015 consolidated statement
of income.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify">Forty-four of the Company’s vessels,
with a total carrying value of $1,839,665 as of December 31, 2015, have been provided as collateral to secure the long-term debt
discussed in Note 10. This excludes the three vessels under the sale and leaseback transaction described in Note 11.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The amounts in the accompanying consolidated
balance sheets are analyzed as follows: </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify"></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td style="font-weight: bold"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="font-weight: bold; padding-bottom: 1pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><font style="font: 8pt Times New Roman, Times, Serif"><b>Financing
Costs</b></font></td><td style="font-weight: bold; padding-bottom: 1pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><font style="font: 8pt Times New Roman, Times, Serif"><b>Dry-docking
and Special Survey Costs</b></font></td><td style="font-weight: bold; padding-bottom: 1pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><font style="font: 8pt Times New Roman, Times, Serif"><b>Total</b></font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 46%; font-weight: bold; text-align: justify"><font style="font: 8pt Times New Roman, Times, Serif"><b>Balance,
January 1, 2013</b></font></td><td style="width: 5%; font-weight: bold"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; font-weight: bold; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="width: 11%; font-weight: bold; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"><b>11,313</b></font></td><td style="width: 1%; font-weight: bold; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="width: 5%; font-weight: bold"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; font-weight: bold; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="width: 11%; font-weight: bold; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"><b>22,786</b></font></td><td style="width: 1%; font-weight: bold; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="width: 5%; font-weight: bold"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; font-weight: bold; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="width: 11%; font-weight: bold; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"><b>34,099</b></font></td><td style="width: 1%; font-weight: bold; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify"><font style="font: 8pt Times New Roman, Times, Serif">Additions</font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">210</font></td><td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">6,189</font></td><td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">6,399</font></td><td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: justify"><font style="font: 8pt Times New Roman, Times, Serif">Amortization</font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">(1,569</font></td><td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif">)</font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">(8,084</font></td><td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif">)</font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">(9,653</font></td><td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify"><font style="font: 8pt Times New Roman, Times, Serif">Derecognition of deferred charges</font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">—  </font></td><td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">(553</font></td><td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif">)</font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">(553</font></td><td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: justify; padding-bottom: 1pt"><font style="font: 8pt Times New Roman, Times, Serif">Write-off</font></td><td style="padding-bottom: 1pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">—  </font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="padding-bottom: 1pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">(428</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif">)</font></td><td style="padding-bottom: 1pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">(428</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-weight: bold; text-align: justify; padding-bottom: 1pt"><font style="font: 8pt Times New Roman, Times, Serif"><b>Balance,
December 31, 2013</b></font></td><td style="font-weight: bold; padding-bottom: 1pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"><b>9,954</b></font></td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="font-weight: bold; padding-bottom: 1pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"><b>19,910</b></font></td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="font-weight: bold; padding-bottom: 1pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"><b>29,864</b></font></td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: justify"><font style="font: 8pt Times New Roman, Times, Serif">Additions</font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">2,055</font></td><td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">10,150</font></td><td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">12,205</font></td><td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify"><font style="font: 8pt Times New Roman, Times, Serif">Amortization</font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">(2,084</font></td><td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif">)</font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">(7,814</font></td><td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif">)</font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">(9,898</font></td><td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: justify; padding-bottom: 1pt"><font style="font: 8pt Times New Roman, Times, Serif">Write-off</font></td><td style="padding-bottom: 1pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">(2,023</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif">)</font></td><td style="padding-bottom: 1pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">(1,473</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif">)</font></td><td style="padding-bottom: 1pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">(3,496</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-weight: bold; text-align: justify; padding-bottom: 1pt"><font style="font: 8pt Times New Roman, Times, Serif"><b>Balance,
December 31, 2014</b></font></td><td style="font-weight: bold; padding-bottom: 1pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"><b>7,902</b></font></td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="font-weight: bold; padding-bottom: 1pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"><b>20,773</b></font></td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="font-weight: bold; padding-bottom: 1pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"><b>28,675</b></font></td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: justify"><font style="font: 8pt Times New Roman, Times, Serif">Additions</font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">—  </font></td><td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">9,461</font></td><td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">9,461</font></td><td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; padding-bottom: 1pt"><font style="font: 8pt Times New Roman, Times, Serif">Amortization</font></td><td style="padding-bottom: 1pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">(1,896</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif">)</font></td><td style="padding-bottom: 1pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">(7,425</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif">)</font></td><td style="padding-bottom: 1pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">(9,321</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-weight: bold; text-align: justify; padding-bottom: 2.5pt"><font style="font: 8pt Times New Roman, Times, Serif"><b>Balance,
December 31, 2015</b></font></td><td style="font-weight: bold; padding-bottom: 2.5pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"><b>6,006</b></font></td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="font-weight: bold; padding-bottom: 2.5pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"><b>22,809</b></font></td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="font-weight: bold; padding-bottom: 2.5pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"><b>28,815</b></font></td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td></tr>
</table>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify"></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify">Financing costs represent fees
paid to the lenders for the conclusion of the Company’s financing. The amortization of loan financing costs is included
in interest and finance costs in the accompanying consolidated statements of income (Note 16).</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify">During the years ended December 31,
2013, 2014 and 2015, eight, eleven and ten vessels, respectively, underwent their special surveys. The amortization of the dry-docking
and special survey costs is separately reflected in the accompanying consolidated statements of income.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify">On May 15, 2013, the Company, along
with its wholly-owned subsidiary, Costamare Ventures Inc. (“Costamare Ventures”), entered into a Framework Deed (the
“Framework Deed”) with York Capital Management Global Advisors LLC and its affiliate Sparrow Holdings, L.P. (collectively,
“York”) to invest jointly in the acquisition and construction of container vessels. Under the Framework Deed the decisions
regarding vessel acquisitions will be made jointly by Costamare Ventures and York and the Company reserves the right to acquire
any vessels that York decides not to pursue.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify">Under the terms of the Framework Deed,
York agreed to invest up to $250 million in mutually agreed vessel acquisitions and Costamare Ventures agreed to invest a minimum
of $75 million with an option to invest up to $240 million in these transactions. Depending on the amount Costamare Ventures elected
to invest, it was expected that it would hold between 25% and 49% of the equity in the entities that would be formed under the
Framework Deed (the “affiliate ship-owning companies”) and York would hold the balance. The Framework Deed was to terminate
on its sixth anniversary or upon the occurrence of certain extraordinary events as described therein.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify">The Framework Deed was amended and
restated by an Amendment and Restatement Deed dated May 18, 2015 (the “Restated Framework Deed”). Pursuant to the Restated
Framework Deed, there is no minimum and maximum amount to be invested by Costamare Ventures or York, both Costamare Ventures and
York can invest between 25% and 75% of the equity in the affiliate ship-owning companies, the commitment period has been extended
up to May 18, 2020 and the termination of the Restated Framework Deed will occur on May 18, 2024, or upon the occurrence of certain
extraordinary events as described therein.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify">On termination, Costamare Ventures
may elect to divide the vessels owned by all such vessel-owning entities between itself and York to reflect their cumulative participation
in all such entities. Costamare Shipping provides shipmanagement and administrative services to the vessels acquired under the
Framework Deed, with the right to subcontract to V.Ships Greece and/or Shanghai Costamare. As at December 31, 2015, the Company
holds a range of 25% to 49% of the capital stock of nineteen jointly-owned companies formed pursuant to the Restated Framework
Deed with York (Note 9). The Company accounts for the entities formed under the Restated Framework Deed as equity investments.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 8pt Times New Roman, Times, Serif">The
affiliate companies, all of which are incorporated in the Marshall Islands and are accounted for under the equity method, are
as follows: </font></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 8pt Times New Roman, Times, Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 8pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: justify"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="font-weight: bold"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td colspan="3" style="font-weight: bold; text-align: center"><font style="font: 8pt Times New Roman, Times, Serif">Participation
%</font></td><td style="font-weight: bold"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="font-weight: bold; text-align: center"><font style="font: 8pt Times New Roman, Times, Serif">Date Established</font></td></tr>
<tr style="vertical-align: bottom">
<td style="font-weight: bold; text-align: justify; border-bottom: Black 1pt solid"><font style="font: 8pt Times New Roman, Times, Serif">Entity</font></td><td style="padding-bottom: 1pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: center; border-bottom: Black 1pt solid"><p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></p><p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><font style="font: 8pt Times New Roman, Times, Serif"><b>Vessel/Hull</b></font></p></td><td style="font-weight: bold; padding-bottom: 1pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><font style="font: 8pt Times New Roman, Times, Serif">December
31, 2015</font></td><td style="font-weight: bold; padding-bottom: 1pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><font style="font: 8pt Times New Roman, Times, Serif">/Acquired</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 22%; text-align: justify"><font style="font: 8pt Times New Roman, Times, Serif">Steadman Maritime Co.</font></td><td style="width: 5%; font-style: italic"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 21%; font-style: italic; text-align: center"><font style="font: 8pt Times New Roman, Times, Serif">Ensenada
Express</font></td><td style="width: 5%"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="width: 19%; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">49</font></td><td style="width: 1%; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif">%</font></td><td style="width: 5%"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 21%; text-align: center"><font style="font: 8pt Times New Roman, Times, Serif">July 1, 2013</font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify"><font style="font: 8pt Times New Roman, Times, Serif">Marchant Maritime Co.</font></td><td style="font-style: italic"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="font-style: italic; text-align: center"><font style="font: 8pt Times New Roman, Times, Serif">Padma</font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">49</font></td><td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif">%</font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: center"><font style="font: 8pt Times New Roman, Times, Serif">July 8, 2013</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: justify"><font style="font: 8pt Times New Roman, Times, Serif">Horton Maritime Co.</font></td><td style="font-style: italic"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="font-style: italic; text-align: center"><font style="font: 8pt Times New Roman, Times, Serif">Petalidi</font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">49</font></td><td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif">%</font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: center"><font style="font: 8pt Times New Roman, Times, Serif">June 26, 2013</font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify"><font style="font: 8pt Times New Roman, Times, Serif">Smales Maritime Co.</font></td><td style="font-style: italic"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="font-style: italic; text-align: center"><font style="font: 8pt Times New Roman, Times, Serif">Elafonisos</font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">49</font></td><td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif">%</font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: center"><font style="font: 8pt Times New Roman, Times, Serif">June 6, 2013</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: justify"><font style="font: 8pt Times New Roman, Times, Serif">Geyer Maritime Co.</font></td><td style="font-style: italic"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="font-style: italic; text-align: center"><font style="font: 8pt Times New Roman, Times, Serif">Arkadia</font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">49</font></td><td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif">%</font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: center"><font style="font: 8pt Times New Roman, Times, Serif">May 18, 2015</font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify"><font style="font: 8pt Times New Roman, Times, Serif">Goodway Maritime Co.</font></td><td style="font-style: italic"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="font-style: italic; text-align: center"><font style="font: 8pt Times New Roman, Times, Serif">Monemvasia</font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">49</font></td><td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif">%</font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: center"><font style="font: 8pt Times New Roman, Times, Serif">September 22, 2015</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: justify"><font style="font: 8pt Times New Roman, Times, Serif">Kemp Maritime Co.</font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: center"><font style="font: 8pt Times New Roman, Times, Serif">Hull NCP0113</font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">49</font></td><td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif">%</font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: center"><font style="font: 8pt Times New Roman, Times, Serif">June 6, 2013</font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify"><font style="font: 8pt Times New Roman, Times, Serif">Hyde Maritime Co.</font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: center"><font style="font: 8pt Times New Roman, Times, Serif">Hull NCP0114</font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">49</font></td><td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif">%</font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: center"><font style="font: 8pt Times New Roman, Times, Serif">June 6, 2013</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: justify"><font style="font: 8pt Times New Roman, Times, Serif">Skerrett Maritime Co.</font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: center"><font style="font: 8pt Times New Roman, Times, Serif">Hull NCP0152</font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">49</font></td><td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif">%</font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: center"><font style="font: 8pt Times New Roman, Times, Serif">December 23, 2013</font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify"><font style="font: 8pt Times New Roman, Times, Serif">Ainsley Maritime Co.</font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: center"><font style="font: 8pt Times New Roman, Times, Serif">Hull NCP0115</font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">25</font></td><td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif">%</font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: center"><font style="font: 8pt Times New Roman, Times, Serif">June 25, 2013</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: justify"><font style="font: 8pt Times New Roman, Times, Serif">Ambrose Maritime Co.</font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: center"><font style="font: 8pt Times New Roman, Times, Serif">Hull NCP0116</font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">25</font></td><td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif">%</font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: center"><font style="font: 8pt Times New Roman, Times, Serif">June 25, 2013</font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify"><font style="font: 8pt Times New Roman, Times, Serif">Benedict Maritime Co.</font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: center"><font style="font: 8pt Times New Roman, Times, Serif">Hull HN2121</font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">40</font></td><td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif">%</font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: center"><font style="font: 8pt Times New Roman, Times, Serif">October 16, 2013</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: justify"><font style="font: 8pt Times New Roman, Times, Serif">Bertrand Maritime Co.</font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: center"><font style="font: 8pt Times New Roman, Times, Serif">Hull HN2122</font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">40</font></td><td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif">%</font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: center"><font style="font: 8pt Times New Roman, Times, Serif">October 16, 2013</font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify"><font style="font: 8pt Times New Roman, Times, Serif">Beardmore Maritime Co.</font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: center"><font style="font: 8pt Times New Roman, Times, Serif">Hull HN2123</font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">40</font></td><td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif">%</font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: center"><font style="font: 8pt Times New Roman, Times, Serif">December 23, 2013</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: justify"><font style="font: 8pt Times New Roman, Times, Serif">Schofield Maritime Co.</font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: center"><font style="font: 8pt Times New Roman, Times, Serif">Hull HN2124</font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">40</font></td><td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif">%</font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: center"><font style="font: 8pt Times New Roman, Times, Serif">December 23, 2013</font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify"><font style="font: 8pt Times New Roman, Times, Serif">Fairbank Maritime Co.</font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: center"><font style="font: 8pt Times New Roman, Times, Serif">Hull HN2125</font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">40</font></td><td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif">%</font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: center"><font style="font: 8pt Times New Roman, Times, Serif">December 23, 2013</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: justify"><font style="font: 8pt Times New Roman, Times, Serif">Platt Maritime Co.</font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: center"><font style="font: 8pt Times New Roman, Times, Serif">Hull YZJ1206</font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">49</font></td><td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif">%</font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: center"><font style="font: 8pt Times New Roman, Times, Serif">May 18, 2015</font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify"><font style="font: 8pt Times New Roman, Times, Serif">Sykes Maritime Co.</font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: center"><font style="font: 8pt Times New Roman, Times, Serif">Hull YZJ1207</font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">49</font></td><td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif">%</font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: center"><font style="font: 8pt Times New Roman, Times, Serif">May 18, 2015</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: justify"><font style="font: 8pt Times New Roman, Times, Serif">Connell Maritime Co.</font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: center"><font style="font: 8pt Times New Roman, Times, Serif">n/a</font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">40</font></td><td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif">%</font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: center"><font style="font: 8pt Times New Roman, Times, Serif">December 18, 2013</font></td></tr>
</table>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify"><font style="font: 8pt Times New Roman, Times, Serif">On
July 12, 2013, in accordance with the Framework Deed, York contributed $16,044, in the aggregate, in order to acquire a 51% equity
interest in the affiliate ship-owning companies Steadman Maritime Co., Marchant Maritime Co. and Horton Maritime Co., and for
initial working capital of such affiliate ship-owning companies (Note 6). There was no difference between: (a) the aggregate of
the fair value of the consideration received and the fair value of the retained investment, as compared with (b) the carrying
amount of the former subsidiaries assets and liabilities, in each case at the date the subsidiaries were deconsolidated.</font></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify"><font style="font: 8pt Times New Roman, Times, Serif">In
July 2013, Costamare Ventures participated with a 49% interest in the equity of Kemp Maritime Co. and Hyde Maritime Co. who entered
into ship-building contracts for the construction of two 11,000 TEU container vessels, by contributing in aggregate $34,709 and
$921 during the years ended December 31, 2014 and 2015, respectively.</font></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify"><font style="font: 8pt Times New Roman, Times, Serif">During
the years ended December 31, 2014 and 2015, Costamare Ventures participated with a 25% interest in the equity of Ainsley Maritime
Co. and Ambrose Maritime Co., who entered into ship-building contracts for the construction of two 11,000 TEU container vessels,
by contributing $8,767 and $13,200 in the aggregate for the years ended December 31, 2014 and 2015, respectively.</font></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify"><font style="font: 8pt Times New Roman, Times, Serif">During
the year ended December 31, 2014, Costamare Ventures participated with a 40% interest in the equity of Benedict Maritime Co.,
Bertrand Maritime Co., Beardmore Maritime Co., Schofield Maritime Co. and Fairbank Maritime Co., who entered into ship-building
contracts for the construction of five 14,000 TEU container vessels, by contributing $30,305, in the aggregate. In December 2014,
these five companies novated their ship-building contracts to a financial institution and agreed to lease back the vessels upon
their delivery from the shipyard for a period of 12 years. Upon novation of the contracts, the Company received the amount of
$23,400 in the form of a dividend. During the year ended December 31, 2015, Costamare Ventures contributed $1,090 in the aggregate
to such companies.</font></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify"><font style="font: 8pt Times New Roman, Times, Serif">During
the year ended December 31, 2014, Costamare Ventures participated with a 40% interest in the equity of Connell Maritime Co. by
contributing the amount of $6,669 and with 49% in the equity of Smales Maritime Co. by contributing the amount of $4,654 for the
acquisition of the secondhand vessel <i>Elafonisos </i>of which $251 was refunded to the Company during the year ended December
31, 2015. Furthermore, during the year ended December 31, 2015, Costamare Ventures participated with 49% in the equity of Geyer
Maritime Co. by contributing the amount of $3,212 for the acquisition of the secondhand vessel <i>Arkadia</i>.</font></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify"><font style="font: 8pt Times New Roman, Times, Serif">In
March 2015, Costamare Ventures participated with a 49% interest in the equity of Skerrett Maritime Co., which entered into a ship-building
contract for the construction of an 11,000 TEU container vessel. During the year ended December 31, 2015, Costamare Ventures contributed
in aggregate, the amount of $21,662. In October 2015, Costamare Ventures participated with 49% in the equity of Goodway Maritime
Co. by contributing the amount of $637 as advance, for the acquisition of the secondhand vessel <i>Monemvasia</i>, which was delivered
in February 2016<i> </i>(Note 21(d))<i>.</i></font></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify"><font style="font: 8pt Times New Roman, Times, Serif">During
the year ended December 31, 2015, Costamare Ventures participated with a 49% interest in the equity of Platt Maritime Co. and
Sykes Maritime Co., who entered into ship-building contracts for the construction of two 3,800 TEU container vessels, by contributing
$4,410, in the aggregate. In December 2015, these two companies novated their ship-building contracts to a financial institution
and agreed to lease back the vessels upon their delivery from the shipyard for a period of seven years. Upon novation of the contracts,
the Company received the amount of $2,744 (Note 21(c)).</font></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify"><font style="font: 8pt Times New Roman, Times, Serif">For
the years ended December 31, 2013, 2014 and 2015, the Company recorded net gains of $692, net losses of $3,428 and net losses
of $529, respectively, which are separately reflected as Equity (loss) /gain on investments in the accompanying consolidated statements
of income.</font></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify"><font style="font: 8pt Times New Roman, Times, Serif">Furthermore,
during the year ended December 31, 2014, eight affiliate ship-owning companies declared dividends to their shareholders and Costamare
Ventures received the amount of $31,828 (which includes the amount of $23,400, described above), which is included in Investments
in affiliates in the accompanying 2014 consolidated balance sheet.</font></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify"><font style="font: 8pt Times New Roman, Times, Serif">In
addition, Costamare Ventures has provided Marchant Maritime Co., Horton Maritime Co. and Steadman Maritime Co. with certain cash
advances. As of December 31, 2014 and 2015, the aggregate balance due from the three companies, amounted to $3,278 and $1,678,
respectively and are included in Due from related parties in the accompanying consolidated balance sheets.</font></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify"><font style="font: 8pt Times New Roman, Times, Serif">The
summarized combined financial information of the affiliates is as follows:<b> </b></font></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="font-weight: bold; padding-bottom: 1pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td colspan="3" style="font-weight: bold; border-bottom: Black 1pt solid"><font style="font: 8pt Times New Roman, Times, Serif"><b>December
31, 2014</b></font></td><td style="font-weight: bold; padding-bottom: 1pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td colspan="3" style="font-weight: bold; border-bottom: Black 1pt solid"><font style="font: 8pt Times New Roman, Times, Serif"><b>December
31, 2015</b></font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 50%; text-align: justify"><font style="font: 8pt Times New Roman, Times, Serif">Non-current assets</font></td><td style="width: 8%"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="width: 15%; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">177,220</font></td><td style="width: 1%; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="width: 8%"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="width: 15%; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">290,805</font></td><td style="width: 1%; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; padding-bottom: 1pt"><font style="font: 8pt Times New Roman, Times, Serif">Current assets</font></td><td style="padding-bottom: 1pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">13,267</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="padding-bottom: 1pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">11,969</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: justify; padding-bottom: 1pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="padding-bottom: 1pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">190,487</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="padding-bottom: 1pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">302,774</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: justify; padding-bottom: 1pt"><font style="font: 8pt Times New Roman, Times, Serif">Current liabilities</font></td><td style="padding-bottom: 1pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">6,283</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="padding-bottom: 1pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">5,335</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: justify; padding-bottom: 1pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="font-weight: bold; padding-bottom: 1pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td colspan="5" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center"><font style="font: 8pt Times New Roman, Times, Serif"><b>Years
ended December 31,</b></font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; padding-bottom: 1pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="font-weight: bold; padding-bottom: 1pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center"><font style="font: 8pt Times New Roman, Times, Serif"><b>2014</b></font></td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="font-weight: bold; padding-bottom: 1pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center"><font style="font: 8pt Times New Roman, Times, Serif"><b>2015</b></font></td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: justify; padding-bottom: 1pt"><font style="font: 8pt Times New Roman, Times, Serif">Voyage revenue</font></td><td style="padding-bottom: 1pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">12,449</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="padding-bottom: 1pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">14,218</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; padding-bottom: 1pt"><font style="font: 8pt Times New Roman, Times, Serif">Net loss</font></td><td style="font-weight: bold; padding-bottom: 1pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"><b>(6,360</b></font></td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"><b>)</b></font></td><td style="font-weight: bold; padding-bottom: 1pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"><b>(1,669</b></font></td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"><b>)</b></font></td></tr>
</table>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The amounts shown in the accompanying consolidated
balance sheets consist of the following:</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 8pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td colspan="9" style="font-weight: bold; border-bottom: Black 1pt solid">Borrower(s)</td><td colspan="2" style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold">December 31, 2014</td>
<td colspan="2" style="padding-bottom: 1pt; font-weight: bold"></td><td style="font-weight: bold; border-bottom: Black 1pt solid">December 31, 2015</td>
<td style="font-weight: bold; padding-bottom: 1pt"></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1pt"> </td><td style="text-align: right">1</td><td style="text-align: left; padding-bottom: 1pt"> </td>
<td style="text-align: left; padding-bottom: 1pt"> </td><td style="text-align: right; padding-bottom: 1pt">Credit Facility</td><td style="text-align: left; padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td>
<td style="text-align: left; padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="2" style="text-align: left; padding-bottom: 1pt"> </td><td style="text-align: right; border-bottom: Black 1pt solid">585,883</td><td style="text-align: left; padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td>
<td style="text-align: right; border-bottom: Black 1pt solid">495,993</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left"> </td><td style="text-align: right">2</td><td style="text-align: left"> </td>
<td style="text-align: left"> </td><td style="text-align: right">Term Loans:</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td> </td>
<td colspan="2" style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td>
<td style="text-align: left"> </td><td style="text-align: right">1</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">Costis Maritime Corporation and Christos Maritime Corporation</td><td> </td>
<td colspan="2" style="text-align: left"> </td><td style="text-align: right">91,500</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">82,500</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td>
<td style="text-align: left"> </td><td style="text-align: right">2</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">Mas Shipping Co.</td><td> </td>
<td colspan="2" style="text-align: left"> </td><td style="text-align: right">38,875</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">30,625</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td>
<td style="text-align: left"> </td><td style="text-align: right">3</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">Montes Shipping Co. and Kelsen Shipping Co.</td><td> </td>
<td colspan="2" style="text-align: left"> </td><td style="text-align: right">78,000</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">66,000</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td>
<td style="text-align: left"> </td><td style="text-align: right">4</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">Capetanissa Maritime Corporation</td><td> </td>
<td colspan="2" style="text-align: left"> </td><td style="text-align: right">50,000</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">45,000</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td>
<td style="text-align: left"> </td><td style="text-align: right">5</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">Rena Maritime Corporation</td><td> </td>
<td colspan="2" style="text-align: left"> </td><td style="text-align: right">47,500</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">42,500</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td>
<td style="text-align: left"> </td><td style="text-align: right">6</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">Costamare Inc.</td><td> </td>
<td colspan="2" style="text-align: left"> </td><td style="text-align: right">73,414</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">60,463</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td>
<td style="text-align: left"> </td><td style="text-align: right">7</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">Adele Shipping Co., Bastian Shipping Co. and Cadence Shipping Co.</td><td> </td>
<td colspan="2" style="text-align: left"> </td><td style="text-align: right">  -</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">-</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td>
<td style="text-align: left"> </td><td style="text-align: right">8</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">Costamare Inc.</td><td> </td>
<td colspan="2" style="text-align: left"> </td><td style="text-align: right">120,330</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">111,417</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td>
<td style="text-align: left"> </td><td style="text-align: right">9</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">Undine Shipping Co., Quentin Shipping Co. and Sander Shipping Co.</td><td> </td>
<td colspan="2" style="text-align: left"> </td><td style="text-align: right">208,826</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">193,545</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td>
<td style="text-align: left"> </td><td style="text-align: right">10</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">Raymond Shipping Co. and Terance Shipping Co.</td><td> </td>
<td colspan="2" style="text-align: left"> </td><td style="text-align: right">137,793</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">126,878</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1pt"> </td><td style="text-align: right"> </td><td style="text-align: left; padding-bottom: 1pt"> </td>
<td style="text-align: left; padding-bottom: 1pt"> </td><td style="text-align: right; padding-bottom: 1pt">11</td><td style="text-align: left; padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td>
<td style="text-align: left; padding-bottom: 1pt">Costamare Inc.</td><td style="padding-bottom: 1pt"> </td>
<td colspan="2" style="text-align: left; padding-bottom: 1pt"> </td><td style="text-align: right; border-bottom: Black 1pt solid">87,820</td><td style="text-align: left; padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td>
<td style="text-align: right; border-bottom: Black 1pt solid">68,170</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1pt"> </td><td style="text-align: right"> </td><td style="text-align: left; padding-bottom: 1pt"> </td>
<td style="text-align: left; padding-bottom: 1pt"> </td><td style="text-align: right; padding-bottom: 1pt"> </td><td style="text-align: left; padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="2" style="text-align: left; padding-bottom: 1pt"> </td><td style="text-align: right; border-bottom: Black 1pt solid">934,058</td><td style="text-align: left; padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td>
<td style="text-align: right; border-bottom: Black 1pt solid">827,098</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold">Total</td><td> </td>
<td colspan="2" style="text-align: left"> </td><td style="text-align: right">1,519,941</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">1,323,091</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1pt"> </td><td style="text-align: right"> </td><td style="text-align: left; padding-bottom: 1pt"> </td>
<td style="text-align: left; padding-bottom: 1pt"> </td><td style="text-align: right; padding-bottom: 1pt"> </td><td style="text-align: left; padding-bottom: 1pt"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="font-weight: bold; padding-bottom: 1pt">Less-current portion</td><td style="padding-bottom: 1pt"> </td>
<td colspan="2" style="text-align: left; padding-bottom: 1pt"> </td><td style="text-align: right; border-bottom: Black 1pt solid">(192,951</td><td style="text-align: left; padding-bottom: 1pt">)</td><td style="padding-bottom: 1pt"> </td>
<td style="text-align: right; border-bottom: Black 1pt solid">(185,259)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 2.5pt"> </td><td style="text-align: right"> </td><td style="text-align: left; padding-bottom: 2.5pt"> </td>
<td style="text-align: left; padding-bottom: 2.5pt"> </td><td style="text-align: right; padding-bottom: 2.5pt"> </td><td style="text-align: left; padding-bottom: 2.5pt"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td>
<td style="font-weight: bold; padding-bottom: 2.5pt">Long-term portion</td><td style="padding-bottom: 2.5pt"> </td>
<td colspan="2" style="text-align: left; padding-bottom: 2.5pt"> </td><td style="text-align: right; border-bottom: Black 2.5pt double">1,326,990</td><td style="text-align: left; padding-bottom: 2.5pt"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="text-align: right; border-bottom: Black 2.5pt double">1,137,832</td></tr>
</table>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify"><b>1. Credit Facility:</b> On July
22, 2008, the Company signed a loan agreement with a consortium of banks, for a $1,000,000 Credit Facility (the “Facility”)
for general corporate and working capital purposes. The Company used $631,340 of the proceeds from the Facility to repay the then
existing indebtedness. The Facility bears interest at the 3, 6, 9 or 12 months (at the Company’s option) LIBOR plus margin.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify">The outstanding balance of the Facility
as of December 31, 2015, is repayable in 10 equal, consecutive quarterly installments, of $22,473 each plus a balloon payment of
$271,263 payable together with the last installment.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify">The Facility, as of December 31, 2015,
was secured with, among others, first priority mortgages over 18 of the Company’s vessels, first priority assignment of vessels’
insurances and earnings, charter party assignments, first priority pledges over the operating accounts and corporate guarantees
of 18 ship-owning companies.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify">The Facility and certain of the term
loans described under Note 10.2 below include among others, financial covenants requiring: (i) the ratio of Total Liabilities (after
deducting cash and cash equivalents) to Market Value Adjusted Total Assets (after deducting cash and cash equivalents) not to exceed
0.75 to 1.00, (ii) minimum liquidity of the greater of $30,000 or 3% of the total debt of the Company, (iii) the ratio of EBITDA
to net interest expense not to be less than 2.50 to 1.00, (iv) Market Value Adjusted Net Worth, defined as the amount by which
the Market Value Adjusted Total Assets exceed the Total Liabilities, to exceed $500,000. The Company’s other term loans described
under Note 10.2 below also contain financial covenants requiring the ratio of net funded debt to total net assets ratio not to
exceed 80% on a charter inclusive valuation basis as well as financial covenants that are either equal to or less stringent than
the foregoing financial covenants.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b> </b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>2. Term loans:</b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify">1. In May 2008, Costis Maritime Corporation
and Christos Maritime Corporation entered into a loan agreement with a bank for an amount of up to $150,000 in the aggregate ($75,000
each) on a joint and several basis in order to partly finance the acquisition cost of the vessels<i> Sealand New York</i> and<i>
Sealand Washington</i>. As at December 31, 2015, the outstanding balance of the loan of $82,500 is repayable in 5 equal semi-annual
installments of $4,500, each from May 2016 to May 2018 and a balloon payment of $60,000 payable together with the last installment.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify">2. In January 2008, Mas Shipping Co.
entered into a loan agreement with a bank for an amount of up to $75,000 in order to partly finance the acquisition cost of vessel<i>
Maersk Kokura</i>. As at December 31, 2015, the outstanding balance of the loan of $30,625 is repayable in 5 equal semi-annual
installments of $4,125, each from February 2016 to February 2018 and a balloon payment of $10,000 payable together with the last
installment.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify">3. In December 2007, Montes Shipping
Co. and Kelsen Shipping Co. entered into a loan agreement with a bank for an amount of up to $150,000 in the aggregate ($75,000
each) on a joint and several basis in order to partly finance the acquisition cost of the vessels<i> Maersk Kawasaki</i> and<i>
Maersk Kure</i>. As at December 31, 2015, the outstanding balance of the loan of $66,000 is repayable in 4 equal semi-annual installments
of $6,000 each from June 2016 to December 2017 and a balloon payment of $42,000 payable together with the last installment.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify">4. In June 2006, Capetanissa Maritime
Corporation entered into a loan agreement with a bank for an amount of up to $90,000, in order to partly finance the acquisition
cost of the vessel<i> Cosco Beijing</i>. As at December 31, 2015, the outstanding balance of the loan of $45,000 is repayable in
6 equal semi-annual installments of $2,500 each from February 2016 to August 2018 and a balloon payment of $30,000 payable together
with the last installment. </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify">5. In February 2006, Rena Maritime
Corporation entered into a loan agreement with a bank for an amount of up to $90,000 in order to partly finance the acquisition
cost of the vessel<i> Cosco Guangzhou</i>. As at December 31, 2015, the outstanding balance of the loan of $42,500 is repayable
in 5 equal semi-annual installments of $2,500 each from February 2016 to February 2018 and a balloon payment of $30,000 payable
together with the last installment.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify">6. On November 19, 2010, Costamare
entered into a term loan agreement with a consortium of banks for an amount of up to $120,000, which was available for drawing
for a period up to 18 months. As of December 31, 2015, the Company had drawn the amount of $38,500 (tranche a), the amount of $42,000
(tranche b), the amount of $21,000 (tranche c), the amount of $7,470 (tranche d) and the amount of $7,470 (tranche e) under this
term loan agreement in order to finance part of the acquisition cost of<i> MSC Romanos</i>,<i> MSC Methoni</i>,<i> MSC Ulsan</i>,<i>
MSC Koroni </i>(ex.<i> Koroni</i>) and<i> MSC Itea </i>(ex.<i> Kyparissia</i>), respectively. As at December 31, 2015, the outstanding
balance of the tranche (a) of the loan of $22,138 is repayable in 15 equal quarterly installments of $962.5 from February 2016
to August 2019 and a balloon payment of $7,700 payable together with the last installment. As at December 31, 2015, the outstanding
balance of the tranche (b) of the loan of $25,200 is repayable in 16 equal quarterly installments of $1,050 from January 2016 to
October 2019 and a balloon payment of $8,400 payable together with the last installment. As at December 31, 2015, the outstanding
balance of the tranche (c) of the loan of $13,125 is repayable in 17 equal quarterly installments of $525 from February 2016 to
February 2020 and a balloon payment of $4,200 payable together with the last installment. On May 21, 2014, the then outstanding
balance of $4,202 of the tranche (d) of the loan was fully repaid and on May 29, 2015, the then outstanding balance of $2,334 of
the tranche (e) of the loan was fully repaid.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify">7. On January 14, 2011, Adele Shipping
Co., Bastian Shipping Co. and Cadence Shipping Co., wholly-owned subsidiaries of Costamare, concluded a credit facility with a
consortium of banks, as joint-and-several borrowers, for an amount of up to $203,343 to finance part of the acquisition and construction
cost of Hulls H1068A, H1069A and H1070A. The drawdown of the facility was made in three tranches, one for each hull. As of December
31, 2013, the Company had drawn the amount of $48,765 (tranche (a) - H1068A), $48,765 (tranche (b) - H1069A) and $48,765 (tranche
(c) - H1070A), in order to partly finance the second installment and fully finance the third and fourth pre- delivery installment
of hulls H1068A, H1069A and H1070A. The newbuilds <i>MSC Azov </i>(Hull H1068A), <i>MSC Ajaccio </i>(Hull H1069A) and <i>MSC Amalfi
</i>(Hull H1070A) were delivered to the Company, on January 14, 2014, March 14, 2014 and April 28, 2014, respectively and at the
same time the Company agreed the sale and leaseback of such vessels and repaid the then outstanding balance of the three tranches
(Note 11).</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify">8. On April 7, 2011, Costamare, as
borrower, concluded a credit facility with a bank, for an amount up to the lesser of $140,000 and 70% of the contract price of
the vessels, to finance part of the acquisition and construction cost of Hulls S4010 and S4011. Through December 31, 2013, the
Company had drawn $133,700 in the aggregate, in order to partly finance the installments of Hulls S4010 (<i>MSC Athens</i>), which
was delivered to the Company on March 14, 2013 and S4011 (<i>MSC Athos</i>), which was delivered to the Company on April 8, 2013.
As at December 31, 2015, the outstanding balance of the loan of $111,417 is repayable in 11 equal semi-annual installments of $4,456.7
from January 2016 until January 2021 and a balloon payment of $62,393.3 payable together with the last installment.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify">9. On August 16, 2011, Undine Shipping
Co., Quentin Shipping Co. and Sander Shipping Co., wholly-owned subsidiaries of Costamare concluded a credit facility with a consortium
of banks, as joint-and-several borrowers, for an amount of up to $229,200 to finance part of the acquisition and construction cost
of Hulls S4020, S4022 and S4024. The drawdown of the facility was made in three tranches. As at December 31, 2015, the outstanding
balance of the tranches (a) and (b) of $127,332 relating to Hull S4020 (<i>Valor</i>) and Hull S4022 (<i>Valiant</i>), is repayable
in 18 equal quarterly installments for each tranche of $1,273.4 from January 2016 to June 2020 and a balloon payment for each tranche
of $40,744.8 payable together with the last installment. As at December 31, 2015, the outstanding balance of the tranche (c) of
$66,213 relating to Hull S4024 (<i>Vantage</i>) is repayable in 20 equal quarterly installments of $1,273.4 and a balloon payment
payable together with the last installment of $40,744.8 from February 2016 to November 2020.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify">10. On October 12, 2011, Raymond Shipping
Co. and Terance Shipping Co. wholly-owned subsidiaries of the Company concluded a credit facility with a bank, as joint and several
borrowers, for an amount of up to $152,800 to finance part of the construction and acquisition cost of Hulls S4021 and S4023. As
at December 31, 2015, the outstanding balance of the tranche (a) of $62,757 relating to Hull S4021 (<i>Value</i>), is repayable
in 18 equal quarterly installments of $1,364.3 from March 2016 to June 2020 and a balloon payment of $38,199.6 payable together
with the last installment. As at December 31, 2015, the outstanding balance of tranche (b) of the loan of $64,121 relating to Hull
S4023 (<i>Valence</i>) is repayable in 19 equal quarterly installments of $1,364.3 from February 2016 to August 2020 and a
balloon payment of $38,199.6 payable together with the last installment.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify">11. On October 6, 2011, the Company
concluded a loan facility with a bank for an amount of up to $120,000, in order to partly finance the aggregate market value of
eleven vessels in its fleet. In March 2012, the Company drew the amount of $113,700. Furthermore, on June 29, 2012, the Company
entered into a supplemental agreement for a further amount of $11,300 to finance the acquisition of the vessel<i> Stadt Luebeck,</i>
which was drawn down in August 2012 upon the delivery of the vessel. In April 11, 2014, the Company entered into another supplemental
agreement, for a further amount of $9,000 to partly finance the acquisition of the vessel <i>Neapolis</i>, which was drawn down
in April 2014 upon the delivery of the vessel. In May 2014, the Company repaid the amount of $6,495 due to the sale of <i>Konstantina</i>.
Furthermore in September 2014 the Company repaid the amount of $6,000 due to the sale of <i>Akritas</i>. In November 2015, the
Company repaid the amount of $3,900 due to the sale of <i>MSC Challenger</i>. As at December 31, 2015, the outstanding balance
of $68,170 is repayable in 12 equal quarterly installments of $2,715 from March 2016 to December 2018 and a balloon payment of
$35,590 payable together with the last installment.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify">The term loans discussed above bear
interest at LIBOR plus a spread and are secured by, inter alia, (a) first priority mortgages over the financed vessels, (b) first
priority assignments of all insurances and earnings of the mortgaged vessels and (c) corporate guarantees of Costamare or its subsidiaries,
as the case may be. The loan agreements contain usual ship finance covenants, including restrictions as to changes in management
and ownership of the vessels, additional indebtedness, mortgaging of vessels, as well as minimum requirements regarding hull Value
Maintenance Clauses (“VMC”) in the range of 80% to 125% and restrictions in dividend payments if an event of default
has occurred and is continuing or would occur as a result of the payment of such dividend.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The annual principal payments required to be
made after December 31, 2015, giving effect of the supplemental agreement of the loan discussed in Note 21(e), are as follows:</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 8pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td colspan="3" style="text-align: justify; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> <b>Year ending December 31,</b></font></td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Amount</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 1%; text-align: left"> </td><td style="width: 43%; text-align: left">2016</td><td style="width: 1%; text-align: left"> </td><td style="width: 10%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 43%; text-align: right">185,259</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left"> </td><td style="text-align: left">2017</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">185,259</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left"> </td><td style="text-align: left">2018</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">564,046</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left"> </td><td style="text-align: left">2019</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">70,396</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left"> </td><td style="text-align: left">2020</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">251,281</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left"> </td><td style="text-align: left">2021</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">66,850</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">1,323,091</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td></tr>
</table>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify">The interest rates of Costamare’s
long-term debt at December 31, 2013, 2014 and 2015, were in the range of 1.25%-6.75%, 1.03%-6.75% and 1.11%-6.75%, respectively.
The weighted average interest rate as at December 31, 2013, 2014 and 2015, was 4.3%, 4.2% and 4.2%, respectively.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify">Total interest expense incurred on
long-term debt (including the effect of the interest rate swaps discussed in Note 16) for the years ended December 31, 2013, 2014
and 2015, amounted to $81,471, $77,655 and $72,384, respectively and is included in Interest and finance costs in the accompanying
consolidated statements of income. Of the above amount incurred in 2013, $11,098 was capitalized and is included (a) in Vessels,
net ($7,845) and, (b) in the statement of comprehensive income ($3,253), representing net settlements on interest rate swaps qualifying
for cash flow hedge. Of the above amount incurred in 2014, $1,795 was capitalized and is included (a) in Vessels, net ($1,306)
and, (b) in the statement of comprehensive income ($489), representing net settlements on interest rate swaps qualifying for cash
flow hedge.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify">The newbuild vessels <i>MSC Azov</i>,
<i>MSC Ajaccio</i> and <i>MSC Amalfi </i>were delivered to the Company on January 14, 2014, March 14, 2014 and April 28, 2014,
respectively (Note 6). At the same time, the Company agreed with a financial institution to refinance the then outstanding balance
of the loans relating to<i> MSC Azov</i>, <i>MSC Ajaccio</i> and <i>MSC Amalfi</i>, by entering into a ten-year sale and leaseback
transaction for each vessel upon their respective deliveries. The shipbuilding contracts for these vessels were novated to a financial
institution for an amount of $85,572 each which took delivery of the vessels and the vessels were leased back for a period of ten
years.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify">The sale and leaseback transactions
were classified as capital leases. Furthermore, as the fair value of each vessel sold was in excess of its carrying amount, the
difference between the sale proceeds and the carrying amount was considered as prepaid lease rentals. In this respect, an aggregate
amount of $49,817 (including the net settlements on interest rate swaps qualifying for hedge accounting of $6,604) was transferred
to prepaid lease rentals.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify">The total value of the three vessels
at the inception of the capital lease transactions amounted to $256,716. The depreciation charged during the years ended December
31, 2014 and 2015, amounted to $6,169 and $7,581, respectively, and are included in Depreciation in the accompanying consolidated
statements of income. As of December 31, 2015, the net book value of the three vessels amounted to $242,966 and is separately reflected
as Capital leased assets, in the accompanying 2015 consolidated balance sheet.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The balance of prepaid lease rentals, as of
December 31, 2014 and 2015, is analyzed as follows:</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 8pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td style="text-align: justify"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">December 31, 2014</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">December 31, 2015</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 56%; text-align: justify; padding-left: 5.4pt">Prepaid lease rentals</td><td style="width: 8%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 12%; text-align: right">49,817</td><td style="width: 1%; text-align: left"> </td><td style="width: 8%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 12%; text-align: right">45,793</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; padding-bottom: 1pt; padding-left: 5.4pt">Less: Amortization of prepaid lease rentals</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(4,024</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(4,982</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-weight: bold; text-align: justify; padding-left: 5.4pt">Prepaid lease rentals</td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">45,793</td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">40,811</td><td style="font-weight: bold; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; padding-bottom: 1pt; padding-left: 5.4pt">Less: current portion</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(4,982</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(4,982</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-weight: bold; text-align: justify; padding-bottom: 2.5pt; padding-left: 5.4pt">Non-current portion</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">40,811</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">35,829</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td></tr>
</table>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The capital lease obligations amounting to $233,624
as at December 31, 2015, are scheduled to expire through 2024 and include a bargain purchase option to repurchase the vessels at
any time during the charter period. Total interest expenses incurred on capital leases for the years ended December 31, 2014 and
2015 amounted to $14,793 and $17,131, respectively and are included in Interest and finance costs in the accompanying consolidated
statements of income.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The annual lease payments in aggregate required
under the capital leases after December 31, 2015, are as follows:</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 8pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td colspan="3" style="font-weight: bold; text-align: justify; border-bottom: Black 1pt solid">Year ending December 31,</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="font-weight: bold; text-align: justify; border-bottom: Black 1pt solid">Amount</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 1%; text-align: left"> </td><td style="width: 43%; text-align: left">2016</td><td style="width: 1%; text-align: left"> </td><td style="width: 10%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 43%; text-align: right">30,783</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left"> </td><td style="text-align: left">2017</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">30,698</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left"> </td><td style="text-align: left">2018</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">30,698</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left"> </td><td style="text-align: left">2019</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">30,699</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left"> </td><td style="text-align: left">2020</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">30,783</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left"> </td><td style="text-align: left"><font style="font-size: 8pt">2021 and thereafter</font></td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">176,769</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: left"><font style="font-size: 8pt"><b>Total </b></font></td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">330,430</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left"> </td><td style="text-align: left"><font style="font-size: 8pt">Less: Amount of interest</font></td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(96,806</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: left"><font style="font-size: 8pt"><b>Total lease payments</b></font></td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">233,624</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td></tr>
</table>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The total capital lease obligations are presented
in the accompanying December 31, 2015, consolidated balance sheet as follows:</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 8pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 70%; text-align: justify; padding-left: 5.4pt">Capital lease obligation – current</td><td style="width: 10%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 18%; text-align: right">14,534</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; padding-bottom: 1pt; padding-left: 5.4pt">Capital lease obligation – non current</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">219,090</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: justify; padding-bottom: 2.5pt; padding-left: 5.4pt"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">233,624</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td></tr>
</table>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify"><b><i>(a) Accrued charter revenue,
Current and Non-Current:</i></b> The amounts presented as current and non-current accrued charter revenue in the accompanying consolidated
balance sheets as of December 31, 2014 and 2015, reflect revenue earned, but not collected, resulting from charter agreements providing
for varying annual charter rates over their term, which were accounted for on a straight-line basis at their average rates. As
at December 31, 2014, the net accrued charter revenue, totaling to ($32,751) comprises $511 separately reflected in Current assets,
$1,025 separately reflected in Non-current assets, and ($34,287) (discussed in (b) below) included in Unearned revenue in current
and non-current liabilities in the accompanying 2014 consolidated balance sheet. As at December 31, 2015, the net accrued charter
revenue, totaling to ($35,369) comprises $457 separately reflected in Current assets, $569 separately reflected in Non-current
assets, and ($36,395) (discussed in (b) below) included in Unearned revenue in current and non-current liabilities in the accompanying
2015 consolidated balance sheet. The maturities of the net accrued charter revenue as of December 31 of each year presented below
are as follows:</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 8pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td colspan="3" style="text-align: justify; border-bottom: Black 1pt solid"><p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b> </b></p><p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b> </b></p><p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Year ending December 31, </b></p></td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="font-weight: bold; text-align: justify; border-bottom: Black 1pt solid">Amount</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 1%; text-align: left"> </td><td style="width: 43%; text-align: left">2016</td><td style="width: 1%; text-align: left"> </td><td style="width: 10%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 43%; text-align: right">(9,430</td><td style="width: 1%; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left"> </td><td style="text-align: left">2017</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(11,336</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left"> </td><td style="text-align: left">2018</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(8,919</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left"> </td><td style="text-align: left">2019</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(5,684</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">(35,369</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">)</td></tr>
</table>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i> </i></b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i> </i></b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>(b) Unearned Revenue, Current and Non-Current:</i></b>
The amounts presented as current and non-current unearned revenue in the accompanying consolidated balance sheets as of December
31, 2014 and 2015, reflect: (a) cash received prior to the balance sheet date for which all criteria to recognize as revenue have
not been met and, (b) any unearned revenue resulting from charter agreements providing for varying annual charter rates over their
term, which were accounted for on a straight-line basis at their average rate.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 8pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td style="text-align: justify"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">December 31, 2014</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">December 31, 2015</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 56%; text-align: justify">Hires collected in advance</td><td style="width: 8%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 12%; text-align: right">8,096</td><td style="width: 1%; text-align: left"> </td><td style="width: 8%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 12%; text-align: right">8,469</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; padding-bottom: 1pt">Charter revenue resulting from varying charter rates</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">34,287</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">36,395</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-weight: bold; text-align: justify">Total</td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">42,383</td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">44,864</td><td style="font-weight: bold; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-weight: bold; text-align: justify; padding-bottom: 1pt">Less current portion</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(12,929</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(18,356</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-weight: bold; text-align: justify; padding-bottom: 2.5pt">Non-current portion</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">29,454</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">26,508</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td></tr>
</table>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>(a) Time charters:</i></b> As at December
31, 2015, the Company has entered into time charter arrangements on all of its vessels in operation, with the exception of three
vessels, with international liner operators. These arrangements as at December 31, 2015, have remaining terms of up to 99 months.
After December 31, 2015, future minimum contractual charter revenues assuming 365 revenue days per annum per vessel and the earliest
redelivery dates possible, based on vessels’ committed, non-cancelable, time charter contracts, are as follows:</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 8pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td colspan="3" style="font-weight: bold; text-align: justify; border-bottom: Black 1pt solid">Year ending December 31,</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="font-weight: bold; text-align: justify; border-bottom: Black 1pt solid">Amount</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 1%; text-align: left"> </td><td style="width: 43%; text-align: left">2016</td><td style="width: 1%; text-align: left"> </td><td style="width: 10%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 43%; text-align: right">446,325</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left"> </td><td style="text-align: left">2017</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">371,984</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left"> </td><td style="text-align: left">2018</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">198,759</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left"> </td><td style="text-align: left">2019</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">122,306</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left"> </td><td style="text-align: left">2020</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">93,841</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left"> </td><td style="text-align: left"><font style="font-size: 8pt">2021 and thereafter</font></td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">217,011</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">1,450,226</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td></tr>
</table>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><br clear="all" />
<b><i>(b)</i></b> Pursuant to the Restated Framework Deed the Company has a contractual commitment of approximately $108,330 representing
49% of the remaining construction cost of five vessels under construction, 40% of the remaining construction cost of five vessels
under construction and 25% of the construction cost of two vessels under construction (Note 9). Additionally, the Company has an
outstanding commitment of approximately $2,548 representing 49% of the remaining purchase price of the vessel <i>Monemvasia</i>
(ex. <i>Helgoland Trader</i>), which was paid upon delivery of the vessel (Note 21(d)).</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify"><b><i>(c) Other:</i></b> Various claims,
suits, and complaints, including those involving government regulations and product liability, arise in the ordinary course of
the shipping business. In addition, losses may arise from disputes with charterers, agents, insurance and other claims with suppliers
relating to the operations of the Company’s vessels. Currently, management is not aware of any such claims not covered by
insurance or contingent liabilities, which should be disclosed, or for which a provision has not been established in the accompanying
consolidated financial statements.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify">The Company accrues for the cost of
environmental liabilities when management becomes aware that a liability is probable and is able to reasonably estimate the probable
exposure. Currently, management is not aware of any other claims or contingent liabilities which should be disclosed or for which
a provision should be established in the accompanying consolidated financial statements.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify">The Company is covered for liabilities
associated with the individual vessels’ actions to the maximum limits as provided by Protection and Indemnity (P&I) Clubs,
members of the International Group of P&I Clubs.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>(a) Common Stock:</i></b> From inception
through July 11, 2010, the authorized common stock of Costamare consisted of 2,000,000 shares with a par value of $0.0001 per share
out of which 1,000,000 shares were issued to the Family. On July 12, 2010, the Company’s articles of incorporation were amended.
Under the amended articles of incorporation, the Company’s authorized capital stock consists of 1,000,000,000 shares of common
stock, par value $0.0001 per share and 100,000,000 preferred shares, par value $0.0001 per share of which no shares were issued.
Of these preferred shares, 10,000,000 shares have been designated Series A Participating Preferred Stock in connection with the
adoption of a stockholder rights plan. All shares of stock are in registered form.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On July 20, 2010, pursuant to a rights offering
authorized by the Board of Directors on July 14, 2010, the Company issued 24,000,000 shares of common stock in exchange of $2,400,
increasing the issued share capital of the Company to 25,000,000 shares of common stock.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On October 19, 2010, within the context of the
Initial Public Offering completed in November 2010, the Company effected a dividend of 0.88 shares for each share of common stock
outstanding on the record date of August 27, 2010 (the “Stock Split”). As a result of this dividend, the Company issued
22,000,000 additional shares in respect of its 25,000,000 shares of the then outstanding common stock.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On November 4, 2010, the Company completed its
Initial Public Offering in the United States under the Securities Act. In this respect 13,300,000 common shares at par value $0.0001
were issued at a public offering price of $12.00 per share, increasing the issued share capital to 60,300,000 shares. The net proceeds
of the Initial Public Offering were $145,543.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On March 27, 2012, the Company completed a follow-on
public equity offering in the United States under the Securities Act. In this respect 7,500,000 shares at par value $0.0001 were
issued at a public offering price of $14.10 per share, increasing the issued share capital to 67,800,000 shares. The net proceeds
of the follow-on offering were $100,584.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On October 19, 2012, the Company completed a
follow-on public equity offering in the United States under the Securities Act. In this respect 7,000,000 shares at par value $0.0001
were issued at a public offering price of $14.00 per share, increasing the issued share capital to 74,800,000 shares. The net proceeds
of the follow-on offering were $93,547.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On March 31, 2015, June 30, 2015 and September
30, 2015, the Company issued 448,800 shares, in aggregate, at par value of $0.0001 to Costamare Shipping pursuant to the Group
Management Agreement (Note 3). Furthermore, on December 31, 2015, the Company issued 149,600 shares, at par value of $0.0001 to
Costamare Services pursuant to the Services Agreement (Note 3). The fair value of such shares was calculated based on the closing
trading price at the date of issuance. There were no share based payment awards outstanding at the end of 2015. </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>(b) Preferred Stock:</i></b> On August
7, 2013, the Company issued 2,000,000, Series B Preferred Stock in the United States under the Securities Act, which pay dividends
of 7.625% per annum in arrears on a quarterly basis (equal to $1.90625 per annum per share) at $25 per share. At any time after
August 6, 2018, the Series B Preferred Stock may be redeemed, at the Company’s election at a price of $25 of liquidation
preference per share. The net proceeds from the offering were $48,042.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On January 22, 2014, the Company issued 4,000,000,
Series C Preferred Stock in the United States under the Securities Act, which pay dividends of 8.50% per annum in arrears on a
quarterly basis (equal to $2.125 per annum per share) at $25 per share. At any time after January 21, 2019, the Series C Preferred
Stock may be redeemed, at the Company’s election at a price of $25 of liquidation preference per share. The net proceeds
from the offering were $96,523.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On May 13, 2015, the Company issued 4,000,000,
Series D Preferred Stock in the United States under the Securities Act, which pay dividends of 8.75% per annum in arrears on a
quarterly basis (equal to $2.1875 per annum per share) at $25 per share. At any time after May 13, 2020, the Series D Preferred
Stock may be redeemed, at the Company’s election at a price of $25 of liquidation preference per share. The net proceeds
from the offering were $96,616.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>(c) Additional Paid-in Capital:</i></b>
The amounts shown in the accompanying consolidated balance sheets, as additional paid-in capital, include: (i) payments made by
the stockholders at various dates to finance vessel acquisitions in excess of the amounts of bank loans obtained, (ii) advances
for working capital purposes, (iii) the difference between the par value of the shares issued in the Initial Public Offering in
November 2010 and the offerings in March 2012, October 2012, August 2013, January 2014, May 2015 and the net proceeds received
from the issuance of such shares and (iv) the difference between the par value and the fair value of the shares issued to Costamare
Shipping and Costamare Services (Note 3).</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>(d) Dividends declared and / or paid</i></b>:
During the year ended December 31, 2014, the Company declared and paid to its common stockholders (i) $20,196 or $0.27<b> </b>per
common share for the fourth quarter of 2013, (ii) $20,944 or $0.28<b> </b>per common share for the first quarter of 2014, (iii)
$20,944 or $0.28<b> </b>per common share for the second quarter of 2014 and (iv) $20,944 or $0.28<b> </b>per common share for the
third quarter of 2014. During the year ended December 31, 2015, the Company declared and paid to its common stockholders (i) $20,944
or $0.28<b> </b>per common share for the fourth quarter of 2014, (ii) $21,736 or $0.29<b> </b>per common share for the first quarter
of 2015, (iii) $21,779 or $0.29<b> </b>per common share for the second quarter of 2015 and (iv) $21,822 or $0.29 per common share
for the third quarter of 2015. During the year ended December 31, 2014, the Company declared and paid to its holders of Series
B Preferred Stock $953 or $0.476563 per share for the period from October 15, 2013 to January 14, 2014, $953 or $0.476563 per share
for the period from January 15, 2014 to April 14, 2014, $953 or $0.476563 per share for the period from April 15, 2014 to July
14, 2014 and $953 or $0.476563 per share for the period from July 15, 2014 to October 14, 2014. During the year ended December
31, 2015, the Company declared and paid to its holders of Series B Preferred Stock $953 or $0.476563 per share for the period from
October 15, 2014 to January 14, 2015, $953 or $0.476563 per share for the period from January 15, 2015 to April 14, 2015, $953
or $0.476563 per share for the period from April 15, 2015 to July 14, 2015 and $953 or $0.476563 per share for the period from
July 15, 2015 to October 14, 2015. During the year ended December 31, 2014, the Company declared and paid to its holders of Series
C Preferred Stock $1,983 or $0.495833 per share for the period from January 22, 2014 to April 14, 2014, $2,125 or $0.531250 per
share for the period from April 15, 2014 to July 14, 2014 and $2,125 or $0.531250 per share for the period from July 15, 2014 to
October 14, 2014. During the year ended December 31, 2015, the Company declared and paid to its holders of Series C Preferred Stock
$2,125 or $0.531250 per share for the period from October 15, 2014 to January 14, 2015, $2,125 or $0.531250 per share for the period
from January 15, 2015 to April 14, 2015, $2,125 or $0.531250 per share for the period from April 15, 2015 to July 14, 2015 and
$2,125 or $0.531250 per share for the period from July 15, 2015 to October 14, 2015. During the year ended December 31, 2015, the
Company declared and paid to its holders of Series D Preferred Stock $1,506 or $0.376736 per share for the period from May 13,
2015 to July 14, 2015 and $2,188 or $0.546875 per share for the period from July 15, 2015 to October 14, 2015.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">All common shares issued are Costamare common
stock and have equal rights to vote and participate in dividends. In August 2013, the Company issued Series B Preferred Stock,
receiving an annual dividend of 7.625% in arrears on the 15th day of January, April, July and October of each year. In January
2014, the Company issued Series C Preferred Stock, receiving an annual dividend of 8.50% in arrears on the 15th day of January,
April, July and October of each year. Additionally, in May 2015, the Company issued Series D Preferred Stock, receiving an annual
dividend of 8.75% in arrears on the 15th day of January, April, July and October of each year. Profit or loss attributable to common
equity holders is adjusted by the contractual amount of dividends on Series B Preferred Stock, Series C Preferred Stock and Series
D Preferred Stock that should be paid for the period. Dividends paid or accrued on Series B Preferred Stock, Series C Preferred
Stock and Series D Preferred Stock during the years ended December 31, 2013, 2014 and 2015, amounted to $1,536, $11,909 and $17,903,
respectively.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 8pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td> </td>
<td style="font-weight: bold; text-align: center"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center"></td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">December 31,2013</td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center"></td>
<td style="font-weight: bold; text-align: center"></td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center"></td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">December 31, 2014</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="font-weight: bold; text-align: center"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center"></td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">December 31,2015</td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center"></td>
<td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: center"><b>Basic EPS</b></td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: center"><b>Basic EPS</b></td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: center"><b>Basic EPS</b></td><td style="text-align: left"> </td>
<td style="text-align: right"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="width: 46%; text-align: justify">Net income</td><td style="width: 5%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">103,087</td><td style="width: 1%; text-align: left"> </td><td style="width: 5%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">115,087</td><td style="width: 1%; text-align: left"> </td><td style="width: 5%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">143,764</td><td style="width: 1%; text-align: left"> </td>
<td style="text-align: right"></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: justify; padding-bottom: 1pt">Less: paid and accrued earnings allocated to Preferred Stock</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(1,536</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(11,909</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(17,903</td><td style="padding-bottom: 1pt; text-align: left">)</td>
<td style="text-align: right"></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; padding-bottom: 1pt">Net income available to common stockholders</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">101,551</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">103,178</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">125,861</td><td style="padding-bottom: 1pt; text-align: left"> </td>
<td style="text-align: right"></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: justify; padding-bottom: 1pt">Weighted average number of common shares, basic and diluted</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">74,800,000</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">74,800,000</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">75,027,474</td><td style="padding-bottom: 1pt; text-align: left"> </td>
<td style="text-align: right"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; padding-bottom: 1pt">Earnings per common share, basic and diluted</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">1.36</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">1.38</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">1.68</td><td style="padding-bottom: 1pt; text-align: left"> </td>
<td style="border-bottom: Black 1pt solid; text-align: right"></td></tr>
</table>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> The amounts in the
accompanying consolidated statements of income are analyzed as follows:</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td> </td><td style="font: bold 8pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td colspan="3" style="font: bold 8pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">2013</td><td style="font: bold 8pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td colspan="3" style="font: bold 8pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">2014</td><td style="font: bold 8pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td colspan="3" style="font: bold 8pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">2015</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 46%; font: 8pt Times New Roman, Times, Serif; text-align: justify; padding-left: 5.4pt">Interest expense</td><td style="width: 5%; font: 8pt Times New Roman, Times, Serif"> </td>
<td style="width: 1%; font: 8pt Times New Roman, Times, Serif; text-align: left"> </td><td style="width: 11%; font: 8pt Times New Roman, Times, Serif; text-align: right">33,018</td><td style="width: 1%; font: 8pt Times New Roman, Times, Serif; text-align: left"> </td><td style="width: 5%; font: 8pt Times New Roman, Times, Serif"> </td>
<td style="width: 1%; font: 8pt Times New Roman, Times, Serif; text-align: left"> </td><td style="width: 11%; font: 8pt Times New Roman, Times, Serif; text-align: right">46,345</td><td style="width: 1%; font: 8pt Times New Roman, Times, Serif; text-align: left"> </td><td style="width: 5%; font: 8pt Times New Roman, Times, Serif"> </td>
<td style="width: 1%; font: 8pt Times New Roman, Times, Serif; text-align: left"> </td><td style="width: 11%; font: 8pt Times New Roman, Times, Serif; text-align: right">45,070</td><td style="width: 1%; font: 8pt Times New Roman, Times, Serif; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font: 8pt Times New Roman, Times, Serif; text-align: justify; padding-left: 5.4pt">Interest capitalized</td><td style="font: 8pt Times New Roman, Times, Serif"> </td>
<td style="font: 8pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 8pt Times New Roman, Times, Serif; text-align: right">(11,098</td><td style="font: 8pt Times New Roman, Times, Serif; text-align: left">)</td><td style="font: 8pt Times New Roman, Times, Serif"> </td>
<td style="font: 8pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 8pt Times New Roman, Times, Serif; text-align: right">(1,795</td><td style="font: 8pt Times New Roman, Times, Serif; text-align: left">)</td><td style="font: 8pt Times New Roman, Times, Serif"> </td>
<td style="font: 8pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 8pt Times New Roman, Times, Serif; text-align: right">—  </td><td style="font: 8pt Times New Roman, Times, Serif; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font: 8pt Times New Roman, Times, Serif; text-align: justify; padding-left: 5.4pt">Swap effect</td><td style="font: 8pt Times New Roman, Times, Serif"> </td>
<td style="font: 8pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 8pt Times New Roman, Times, Serif; text-align: right">48,453</td><td style="font: 8pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 8pt Times New Roman, Times, Serif"> </td>
<td style="font: 8pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 8pt Times New Roman, Times, Serif; text-align: right">46,103</td><td style="font: 8pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 8pt Times New Roman, Times, Serif"> </td>
<td style="font: 8pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 8pt Times New Roman, Times, Serif; text-align: right">44,445</td><td style="font: 8pt Times New Roman, Times, Serif; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font: 8pt Times New Roman, Times, Serif; text-align: justify; padding-left: 5.4pt">Amortization and write-off of financing costs</td><td style="font: 8pt Times New Roman, Times, Serif"> </td>
<td style="font: 8pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 8pt Times New Roman, Times, Serif; text-align: right">1,569</td><td style="font: 8pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 8pt Times New Roman, Times, Serif"> </td>
<td style="font: 8pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 8pt Times New Roman, Times, Serif; text-align: right">4,107</td><td style="font: 8pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 8pt Times New Roman, Times, Serif"> </td>
<td style="font: 8pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 8pt Times New Roman, Times, Serif; text-align: right">1,896</td><td style="font: 8pt Times New Roman, Times, Serif; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font: 8pt Times New Roman, Times, Serif; text-align: justify; padding-left: 5.4pt">Commitment fees</td><td style="font: 8pt Times New Roman, Times, Serif"> </td>
<td style="font: 8pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 8pt Times New Roman, Times, Serif; text-align: right">2,283</td><td style="font: 8pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 8pt Times New Roman, Times, Serif"> </td>
<td style="font: 8pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 8pt Times New Roman, Times, Serif; text-align: right">506</td><td style="font: 8pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 8pt Times New Roman, Times, Serif"> </td>
<td style="font: 8pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 8pt Times New Roman, Times, Serif; text-align: right">600</td><td style="font: 8pt Times New Roman, Times, Serif; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font: 8pt Times New Roman, Times, Serif; text-align: justify; padding-bottom: 1pt; padding-left: 5.4pt">Bank charges and other</td><td style="font: 8pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font: 8pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 8pt Times New Roman, Times, Serif; text-align: right">308</td><td style="padding-bottom: 1pt; font: 8pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 8pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font: 8pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 8pt Times New Roman, Times, Serif; text-align: right">296</td><td style="padding-bottom: 1pt; font: 8pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 8pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font: 8pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 8pt Times New Roman, Times, Serif; text-align: right">265</td><td style="padding-bottom: 1pt; font: 8pt Times New Roman, Times, Serif; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 2.5pt; padding-left: 5.4pt"> </td><td style="font: bold 8pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font: bold 8pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; font: bold 8pt Times New Roman, Times, Serif; text-align: right">74,533</td><td style="padding-bottom: 2.5pt; font: bold 8pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: bold 8pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font: bold 8pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; font: bold 8pt Times New Roman, Times, Serif; text-align: right">95,562</td><td style="padding-bottom: 2.5pt; font: bold 8pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: bold 8pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font: bold 8pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; font: bold 8pt Times New Roman, Times, Serif; text-align: right">92,276</td><td style="padding-bottom: 2.5pt; font: bold 8pt Times New Roman, Times, Serif; text-align: left"> </td></tr>
</table>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b> </b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b> </b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Swap effect includes non-hedging instruments’
interest amounting to $5,531, $10,313 and $12,645 for the years ended December 31, 2013, 2014 and 2015, respectively.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify">Under the laws of the countries of
the companies’ incorporation and/or vessels’ registration, the companies are not subject to tax on international shipping
income; however, they are subject to registration and tonnage taxes, which are included in Vessel operating expenses in the accompanying
consolidated statements of income.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify">The vessel owning companies with vessels
that have called on the United States during the relevant year of operation are obliged to file tax returns with the Internal Revenue
Service. The applicable tax is 50% of 4% of U.S. related gross transportation income unless an exemption applies. Management believes
that based on current legislation the relevant vessel owning companies are entitled to an exemption because they satisfy the relevant
requirements, namely that (i) the related vessel owning companies are incorporated in a jurisdiction granting an equivalent exemption
to U.S. corporations and (ii) over 50% of the ultimate stockholders of the vessel owning companies are residents of a country granting
an equivalent exemption to U.S. persons.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify"><b><i>(a) Interest rate swaps that
meet the criteria for hedge accounting:</i></b> The Company, according to its long-term strategic plan to maintain stability in
its interest rate exposure, has decided to minimize its exposure to floating interest rates by entering into interest rate swap
agreements. To this effect, the Company has entered into interest rate swap transactions with varying start and maturity dates,
in order to manage its floating rate exposure.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify">These interest rate swaps are designed
to hedge the variability of interest cash flows arising from floating rate debt, attributable to movements in three-month or six-month
USD LIBOR. According to the Company’s Risk Management Accounting Policy, after putting in place the formal documentation
required by ASC 815 in order to designate these swaps as hedging instruments as from their inception, these interest rate swaps
qualified for hedge accounting. Accordingly, only hedge ineffectiveness amounts arising from the differences in the change in fair
value of the hedging instrument and the hedged item are recognized in the Company’s earnings. Assessment and measurement
of the effectiveness of these interest rate swaps are performed at each reporting period. For qualifying cash flow hedges, the
fair value gain or loss associated with the effective portion of the cash flow hedge is recognized initially in “Other comprehensive
income” and recognized to the consolidated statement of income in the periods when the hedged item affects profit or loss.
Any ineffective portion of the gain or loss on the hedging instrument is recognized in the consolidated statement of income immediately.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify">At December 31, 2014 and 2015, the
Company had interest rate swap agreements with an outstanding notional amount of $1,030,642 and $904,627, respectively. The fair
value of these interest rate swaps outstanding at December 31, 2014 and 2015, amounted to a liability of $55,422 and a liability
of $39,654, respectively and these are included in the accompanying consolidated balance sheets. The maturity of these interest
rate swaps range between June 2018 and January 2021.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify">During the years ended December 31,
2013, 2014 and 2015, the realized ineffectiveness on the interest rate swaps discussed under (a) above was a gain of $254, a gain
of $645 and a loss of $60, respectively and are included in Gain on derivative instruments, net in the accompanying consolidated
statements of income.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify">During the year ended December 31,
2014, the Company terminated three interest rate derivative instruments and paid the counterparty breakage costs of $10,192 in
aggregate and is reflected in the Swaps breakage costs in the accompanying 2014 consolidated statement of income.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify">The estimated net amount that is expected
to be reclassified within the next 12 months from Accumulated Other Comprehensive Loss to earnings in respect of the settlements
on interest rate swaps amounts to $22,118.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify"><b><i>(b) Interest rate swaps that
do not meet the criteria for hedge accounting:</i></b> As of December 31, 2014 and 2015, the Company had interest rate swap agreements
with an outstanding notional amount of $217,533 and $207,439, respectively for the purpose of managing risks associated with the
variability of changing LIBOR-related interest rates. Such agreements did not meet hedge accounting criteria and, therefore, changes
in its fair value are reflected in earnings. The fair value of these interest rate swaps at December 31, 2014 and 2015, was a liability
of $18,509 and a liability of $12,463, respectively and these are included in Fair value of derivatives in the accompanying consolidated
balance sheets. The maturity of these interest rate swaps range between February 2017 and August 2020.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify"><b><i>(c) Foreign currency agreements:
</i></b>As of December 31, 2015, the Company was engaged in 16 Euro/U.S. dollar forward agreements totaling $20,000 at an average
forward rate of Euro/U.S. dollar 1.0725 expiring in monthly intervals up to August 2016.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify">As of December 31, 2014, the Company
was engaged in nine Euro/U.S. dollar forward agreements totaling $22,500 at an average forward rate of Euro/U.S. dollar 1.273 expiring
in monthly intervals up to September 2015.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify">As of December 31, 2013, the Company
had no outstanding Euro/USD foreign currency agreements.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: -11pt"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The total change of forward contracts fair
value for the year ended December 31, 2015, was a gain of $1,361 (loss of $1,009 for the year ended December 31, 2014 and a loss
of $165 for the year ended December 31, 2013) and is included in Gain on derivative instruments, net in the accompanying 2015
consolidated statement of income. </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 8pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td style="text-align: justify"> </td><td> </td>
<td colspan="27"><p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: -11pt"> </p><p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>The Effect of Derivative Instruments for the years ended December 31, 2013, 2014 and 2015</b></p></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: justify"> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="23" style="text-align: justify"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="27" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Derivatives in ASC 815 Cash Flow Hedging Relationships</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"> </td><td> </td>
<td colspan="3" style="text-align: justify"> </td><td> </td>
<td colspan="23" style="text-align: justify"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="11" style="text-align: center; border-bottom: Black 1pt solid"><p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Amount of Gain / (Loss) Recognized in Accumulated OCI on</b></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Derivative</b></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>(Effective Portion)</b></p></td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Location of Gain / (Loss) Recognized in Income on Derivative (Ineffective Portion)</td><td style="padding-bottom: 1pt"> </td>
<td colspan="13" style="text-align: center; border-bottom: Black 1pt solid"><p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Amount of Gain / (Loss)</b></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Recognized in Income on</b></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Derivative</b></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>(Ineffective Portion)</b></p></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify; padding-bottom: 1pt"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2013</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2014</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2015</td><td style="padding-bottom: 1pt"> </td>
<td style="text-align: justify; padding-bottom: 1pt"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2013</td><td style="padding-bottom: 1pt"> </td>
<td style="text-align: center; padding-bottom: 1pt"> </td>
<td style="text-align: center; border-bottom: Black 1pt solid"><b>2014</b></td>
<td style="text-align: center; padding-bottom: 1pt"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2015</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="font-weight: bold; text-align: center; padding-bottom: 1pt"></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 11%; text-align: justify; text-indent: 3.15pt">Interest rate swaps</td><td style="width: 2%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">27,964</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">(12,988</td><td style="width: 1%; text-align: left">)</td><td style="width: 2%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">(20,418</td><td style="width: 1%; text-align: left">)</td><td style="width: 2%"> </td>
<td style="width: 11%; text-align: left">Gain on derivative instruments, net</td><td style="width: 2%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">254</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 8%; text-align: right">645 </td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 8%; text-align: right">(60</td><td style="width: 1%; text-align: left">) </td><td style="width: 2%"> </td>
<td style="text-align: right"></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; padding-bottom: 1pt; text-indent: 3.15pt">Reclassification to Interest and finance costs</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">42,922</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">35,790</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">31,800</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="text-align: justify; padding-bottom: 1pt"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"><font style="font-size: 8pt"><b> -</b></font></td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">-</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">  -</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="font-weight: bold; text-align: right"></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; padding-bottom: 2.5pt; text-indent: 3.15pt"><b>Total</b></td><td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right"><b>70,886</b></td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right"><b>22,802</b></td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right"><b>11,382</b></td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="text-align: justify; padding-bottom: 2.5pt"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">254</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right"><b>645</b></td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">(60</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">)</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td>
<td style="font-weight: bold; text-align: right; padding-bottom: 2.5pt"> </td></tr>
</table>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 8pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td colspan="15" style="text-align: center; border-bottom: Black 1pt solid"><p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Derivatives Not Designated as Hedging Instruments</b></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>and ineffectiveness of Hedging Instruments under ASC 815</b></p></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"> </td><td style="padding-bottom: 1pt"> </td>
<td style="text-align: center; border-bottom: Black 1pt solid"><p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Location of Gain / (Loss)</b></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Recognized in Income on Derivative</b></p></td><td style="padding-bottom: 1pt"> </td>
<td colspan="11" style="text-align: center; border-bottom: Black 1pt solid"><p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Amount of Gain / (Loss)</b></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Recognized in Income</b></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>on Derivative</b></p></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"> </td><td style="padding-bottom: 1pt"> </td>
<td style="text-align: justify"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2013</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2014</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2015</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 18%; text-align: left">Non hedging interest rate swaps</td><td style="width: 3%"> </td>
<td style="width: 18%; text-align: center">Gain on derivative instruments, net</td><td style="width: 3%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 16%; text-align: right">6,459</td><td style="width: 1%; text-align: left"> </td><td style="width: 3%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 15%; text-align: right">5,833</td><td style="width: 1%; text-align: left"> </td><td style="width: 3%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 15%; text-align: right">15,555</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left">Ineffective portion of hedging interest rate swaps</td><td> </td>
<td style="text-align: center">Gain on derivative instruments, net</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">254</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">645</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(60</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1pt">Forward contracts</td><td style="padding-bottom: 1pt"> </td>
<td style="text-align: center; padding-bottom: 1pt">Gain on derivative instruments, net</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(165</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(1,009</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">1,361</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-weight: bold; padding-bottom: 2.5pt">Total</td><td style="padding-bottom: 2.5pt"> </td>
<td style="text-align: justify; padding-bottom: 2.5pt"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">6,548</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">5,469</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">16,856</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td> </td><td> </td>
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
</table>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><b> </b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify"><b><i>(a) Interest rate risk:</i></b>
The Company’s interest rates and loan repayment terms are described in Note 10.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify"><b><i>(b) Concentration of credit risk:</i></b>
Financial instruments which potentially subject the Company to significant concentrations of credit risk, consist principally of
cash and cash equivalents, accounts receivable (included in current and non-current assets), investments in affiliates, equity
securities, debt securities and derivative contracts (interest rate swaps and foreign currency contracts). The Company places its
cash and cash equivalents, consisting mostly of deposits, with high credit rated financial institutions. The Company performs periodic
evaluations of the relative credit standing of those financial institutions. The Company is exposed to credit risk in the event
of non-performance by counterparties to derivative instruments; however, the Company limits its exposure by diversifying among
counterparties with high credit ratings. The Company limits its credit risk with accounts receivable, investments in affiliates
and equity and debt securities by performing ongoing credit evaluations of its customers’, affiliates’ and investees’
financial condition and generally does not require collateral for its accounts receivable.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify"><b><i>(c) Fair value:</i></b> The carrying
amounts reflected in the accompanying consolidated balance sheet of financial assets and accounts payable approximate their respective
fair values due to the short maturity of these instruments. The fair value of long-term bank loans with variable interest rates
approximate the recorded values, generally due to their variable interest rates. The fair value of the interest rate swap agreements
and the foreign currency agreements discussed in Note 18 above are determined through Level 2 of the fair value hierarchy as defined
in FASB guidance for Fair Value Measurements and are derived principally from or corroborated by observable market data, interest
rates, yield curves and other items that allow value to be determined.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify">The fair value of the interest rate
swap agreements discussed in Note 18(a) and (b) equates to the amount that would be paid by the Company to cancel the agreements.
As at December 31, 2014 and 2015, the fair value of these interest rate swaps in aggregate amounted to a liability of $73,931 and
$52,117, respectively.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify">The fair market value of the forward
contracts discussed in Note 18(c) determined through Level 2 of the fair value hierarchy as at December 31, 2014 and 2015, amounted
to a liability of $1,009 and an asset of $352, respectively.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The following tables summarize the hierarchy
for determining and disclosing the fair value of assets and liabilities by valuation technique on a recurring basis as of the valuation
date.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 8pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">December 31, 2014</td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">Quoted Prices in Active Markets for Identical Assets (Level 1)</td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">Significant Other Observable Inputs (Level 2)</td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">Unobservable Inputs (Level 3)</td><td style="font-weight: bold; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-weight: bold; text-align: justify">Recurring measurements:</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 40%; text-align: justify">Forward contracts-liability position</td><td style="width: 3%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 10%; text-align: right">(1,009</td><td style="width: 1%; text-align: left">)</td><td style="width: 3%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 10%; text-align: right">—  </td><td style="width: 1%; text-align: left"> </td><td style="width: 3%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 10%; text-align: right">(1,009</td><td style="width: 1%; text-align: left">)</td><td style="width: 3%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 10%; text-align: right">—  </td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; padding-bottom: 1pt">Interest rate swaps-liability position</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(73,931</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">—  </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(73,931</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">—  </td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-weight: bold; text-align: justify; padding-bottom: 2.5pt">Total</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">(74,940</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">)</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">—  </td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">(74,940</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">)</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">—  </td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td></tr>
</table>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 8pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="font-size: 8pt; font-weight: bold"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="font-size: 8pt; font-weight: bold; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="font-size: 8pt; font-weight: bold; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"><b>December
31, 2015</b></font></td><td style="font-size: 8pt; font-weight: bold; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="font-size: 8pt; font-weight: bold"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="font-size: 8pt; font-weight: bold; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="font-size: 8pt; font-weight: bold; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"><b>Quoted
Prices in Active Markets for Identical Assets (Level 1)</b></font></td><td style="font-size: 8pt; font-weight: bold; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="font-size: 8pt; font-weight: bold"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="font-size: 8pt; font-weight: bold; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="font-size: 8pt; font-weight: bold; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"><b>Significant
Other Observable Inputs (Level 2)</b></font></td><td style="font-size: 8pt; font-weight: bold; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="font-size: 8pt; font-weight: bold"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="font-size: 8pt; font-weight: bold; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="font-size: 8pt; font-weight: bold; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"><b>Unobservable
Inputs (Level 3)</b></font></td><td style="font-size: 8pt; font-weight: bold; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-weight: bold; text-align: justify"><font style="font: 8pt Times New Roman, Times, Serif"><b>Recurring measurements:</b></font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 40%; text-align: justify"><font style="font: 8pt Times New Roman, Times, Serif">Forward contracts-asset
position</font></td><td style="width: 3%"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="width: 10%; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">352</font></td><td style="width: 1%; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="width: 3%"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="width: 10%; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">—  </font></td><td style="width: 1%; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="width: 3%"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="width: 10%; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">352</font></td><td style="width: 1%; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="width: 3%"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="width: 10%; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">—  </font></td><td style="width: 1%; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; padding-bottom: 1pt"><font style="font: 8pt Times New Roman, Times, Serif">Interest rate swaps-liability
position</font></td><td style="padding-bottom: 1pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">(52,117</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif">)</font></td><td style="padding-bottom: 1pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">—  </font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="padding-bottom: 1pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">(52,117</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif">)</font></td><td style="padding-bottom: 1pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">—  </font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-weight: bold; text-align: justify; padding-bottom: 2.5pt"><font style="font: 8pt Times New Roman, Times, Serif">Total</font></td><td style="font-weight: bold; padding-bottom: 2.5pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">(51,765</font></td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif">)</font></td><td style="font-weight: bold; padding-bottom: 2.5pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">—  </font></td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="font-weight: bold; padding-bottom: 2.5pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">(51,765</font></td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif">)</font></td><td style="font-weight: bold; padding-bottom: 2.5pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">—  </font></td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td></tr>
</table>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify">During the year ended December 31,
2013, Other comprehensive income increased with net gains of $67,688 relating to (i) the change of the fair value of derivatives
that qualify for hedge accounting (gain of $27,964), net of the settlements to net income of derivatives that qualify for hedge
accounting (gain of $42,922), (ii) the Net settlements on interest rate swaps qualifying for cash flow hedge associated with vessels
under construction ($3,253) and, (iii) the amounts reclassified from Net settlements on interest rate swaps qualifying for hedge
accounting to depreciation ($55). During the year ended December 31, 2014, Other comprehensive income increased with net gains
of $29,020 relating to (i) the change of the fair value of derivatives that qualify for hedge accounting (loss of $12,988), net
of the settlements to net income of derivatives that qualify for hedge accounting (gain of $35,790), (ii) the Net settlements on
interest rate swaps qualifying for cash flow hedge associated with vessels under construction ($489), (iii) the amounts reclassified
from Net settlements on interest rate swaps qualifying for hedge accounting to depreciation ($103) and (iv) the amounts reclassified
from net settlements on interest rate swaps qualifying for hedge accounting to Prepaid lease rentals ($6,604). During the year
ended December 31, 2015, Other comprehensive income increased with net gains of $11,485 relating to (i) the change of the fair
value of derivatives that qualify for hedge accounting (loss of $20,418), net of the settlements to net income of derivatives that
qualify for hedge accounting (gain of $31,800) and (ii) the amounts reclassified from Net settlements on interest rate swaps qualifying
for hedge accounting to depreciation ($103). During the years ended December 31, 2013, 2014 and 2015, Comprehensive income amounted
to $170,775, $144,107 and $155,249, respectively. The estimated net amount that is expected to be reclassified within the next
12 months from Accumulated Other Comprehensive Loss to earnings in respect of the net settlements on interest rate swaps amounts
to $22,118.</p>
<p style="margin: 0pt"></p>
<table cellpadding="0" cellspacing="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top">
<td style="width: 0.25in"></td><td style="width: 0.25in"><font style="font-size: 8pt"><b><i>(a)</i></b></font></td><td style="text-align: justify"><font style="font-size: 8pt"><b><i>Declaration of Dividends (common stock): </i></b>i)<b> </b>On
January 4, 2016, the Company declared a dividend for the fourth quarter ended December 31, 2015, of $0.29 per share on our common
stock, paid on February 4, 2016, to stockholders of record on January 21, 2016 and ii) On April 1, 2016, the Company declared a
dividend for the first quarter ended March 31, 2016, of $0.29 per share on our common stock, payable on May 4, 2016, to stockholders
of record on April 19, 2016.</font></td></tr></table>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top">
<td style="width: 0.25in"></td><td style="width: 0.25in"><font style="font-size: 8pt"><b><i>(b)</i></b></font></td><td style="text-align: justify"><font style="font-size: 8pt"><b><i>Declaration and Payment of Dividends (preferred stock Series
B, Series C and Series D):</i></b> i) On January 4, 2016, the Company declared a cash dividend of $953 or $0.476563 per share on
its Series B Preferred Stock, a cash dividend of $2,125 or $0.531250 per share on its Series C Preferred Stock and a cash dividend
of $2,188 or $0.546875 per share on its Series D Preferred Stock, paid on January 15, 2016, to holders of record on January 14,
2016 and ii) On April 1, 2016, the Company declared a cash dividend of $953 or $0.476563 per share on its Series B Preferred Stock,
a cash dividend of $2,125 or $0.531250 per share on its Series C Preferred Stock and a cash dividend of $2,188 or $0.546875 per
share on its Series D Preferred Stock, payable on April 15, 2016, to holders of record on April 14, 2016.</font></td></tr></table>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top">
<td style="width: 0.25in"></td><td style="width: 0.25in"><font style="font-size: 8pt"><b><i>(c)</i></b></font></td><td style="text-align: justify"><font style="font-size: 8pt"><b><i>Investments in affiliates:</i></b> Platt Maritime Co. and Sykes
Maritime Co. novated their ship-building contracts to a financial institution and agreed to lease back the vessels upon their delivery
from the shipyard for a period of seven years. On February 11, 2016 and upon novation of the contracts, the Company received the
amount of $2,744 in the form of a dividend.</font></td></tr></table>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top">
<td style="width: 0.25in"></td><td style="width: 0.25in"><font style="font-size: 8pt"><b><i>(d)</i></b></font></td><td style="text-align: justify"><font style="font-size: 8pt"><b><i>Vessel acquisition: </i></b>On February 18, 2016, pursuant to
the Amended Deed Agreement with York, the Company took delivery of the 1998-built, 2,472 TEU containership <i>Monemvasia </i>(ex.<i>
Helgoland Trader</i>)<i> </i>by contributing in aggregate the amount of $2,925.</font></td></tr></table>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top">
<td style="width: 0.25in"></td><td style="width: 0.25in"><font style="font-size: 8pt"><b><i>(e)</i></b></font></td><td style="text-align: justify"><font style="font-size: 8pt"><b><i>Amendment of term loan:</i></b> On January 27, 2016, Kelsen
Shipping Co. and Montes Shipping Co. entered into a supplemental agreement with the bank in order to reschedule the repayment of
the outstanding loan amount of $66,000 (Note 10.2.3) by extending the repayment, in 10 consecutive semi-annual variable installments
from June 2016 until December 2020 and a balloon payment of $12,000 payable together with the last installment.</font></td></tr></table>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top">
<td style="width: 0.25in"></td><td style="width: 0.25in"><font style="font-size: 8pt"><b><i>(f)</i></b></font></td><td style="text-align: justify"><font style="font-size: 8pt"><b><i>Issuance of common shares:</i></b> On March 31, 2016, the Company
issued 149,600 shares to Costamare Services, pursuant to the Services Agreement (Note 3).</font></td></tr></table>
<p style="margin: 0pt"></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify"><b><i>(a) Principles of Consolidation:</i></b>
The accompanying consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles
(“U.S. GAAP”). The consolidated financial statements include the accounts of Costamare and its wholly-owned subsidiaries.
All intercompany balances and transactions have been eliminated upon consolidation.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify">Costamare as the holding company determines
whether it has a controlling financial interest in an entity by first evaluating whether the entity is a voting interest entity
or a variable interest entity. Under Accounting Standards Codification (“ASC”) 810 “Consolidation,” (formerly
Accounting Research Bulletin (“ARB”) No. 51) a voting interest entity is an entity in which the total equity investment
at risk is sufficient to enable the entity to finance itself independently and provides the equity holders with the obligation
to absorb losses, the right to receive residual returns and the right to make financial and operating decisions. Costamare consolidates
voting interest entities in which it owns all, or at least a majority (generally, greater than 50%), of the voting interest. Variable
interest entities (“VIE”) are entities as defined under ASC 810-10, that in general either do not have equity investors
with voting rights or that have equity investors that do not provide sufficient financial resources for the entity to support its
activities. A controlling financial interest in a VIE is present when a company absorbs a majority of an entity’s expected
losses, receives a majority of an entity’s expected residual returns, or both. The company with a controlling financial interest,
known as the primary beneficiary, is required to consolidate the VIE. The Company evaluates all arrangements that may include a
variable interest in an entity to determine if it may be the primary beneficiary, and would be required to include assets, liabilities
and operations of a VIE in its consolidated financial statements. As of December 31, 2014 and 2015 no such interest existed.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify"><b><i>(b) Use of Estimates:</i></b>
The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions
that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the
consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results
could differ from those estimates.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify"><b><i>(d) Foreign Currency Translation:</i></b>
The functional currency of the Company is the U.S. dollar because the Company’s vessels operate in international shipping
markets and, therefore, primarily transact business in U.S. dollars. The Company’s books of accounts are maintained in U.S.
dollars. Transactions involving other currencies during the year are converted into U.S. dollars using the exchange rates in effect
at the time of the transactions. At the balance sheet dates, monetary assets and liabilities, which are denominated in other currencies,
are translated into U.S. dollars at the year-end exchange rates. Resulting gains or losses are reflected separately in the accompanying
consolidated statements of income.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify"><b><i>(e) Cash and Cash Equivalents:</i></b>
The Company considers highly liquid investments such as time deposits and certificates of deposit with an original maturity of
three months or less to be cash equivalents. Cash also includes other kinds of accounts that have the general characteristics of
demand deposits in that the customer may deposit additional funds at any time and also effectively may withdraw funds at any time
without prior notice or penalty.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify"><b><i>(f) Restricted Cash:</i></b>
Restricted cash is additional minimum cash deposits required to be maintained with certain banks under the Company’s borrowing
arrangements. Restricted cash includes bank deposits and deposits in so-called “retention accounts” that are required
under the Company’s borrowing arrangements which are used to fund the loan installments coming due. The funds can only be
used for the purposes of loan repayment.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify"><b><i>(g) Accounts Receivable, net:</i></b>
The amount shown as receivables, at each balance sheet date, mainly includes receivables from charterers for hire, net of any provision
for doubtful accounts. At each balance sheet date, all potentially uncollectible accounts are assessed individually for purposes
of determining the appropriate provision for doubtful accounts. The provision established for doubtful accounts as of December
31, 2014 and 2015, is $0.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify"><b><i>(h) Inventories:</i></b> Inventories
consist of bunkers, lubricants and spare parts which are stated at the lower of cost or market on a consistent basis. Cost incurred
to bring inventories to their present location and condition is determined by the first in, first out method.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify"><b><i>(i) Insurance Claims Receivable:</i></b>
The Company records insurance claim recoveries for insured losses incurred on damage to fixed assets and for insured crew medical
expenses. Insurance claim recoveries are recorded, net of any deductible amounts, at the time the Company’s fixed assets
suffer insured damages or when crew medical expenses are incurred, recovery is probable under the related insurance policies and
the claim is not subject to litigation.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify"><b><i>(j) Vessels, Net:</i></b> Vessels
are stated at cost, which consists of the contract price and any material expenses incurred upon acquisition (initial repairs,
improvements and delivery expenses, interest and on-site supervision costs incurred during the construction periods). Subsequent
expenditures for conversions and major improvements are also capitalized when they appreciably extend the life, increase the earning
capacity or improve the efficiency or safety of the vessels; otherwise these amounts are charged to expense as incurred.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify">The cost of each of the Company’s
vessels is depreciated from the date of acquisition on a straight-line basis over the vessel’s remaining estimated economic
useful life, after considering the estimated residual value which is equal to the product of vessels’ lightweight tonnage
and estimated scrap rate, which up until December 31, 2014, was estimated to be approximately $0.250 per lightweight ton. In order
to align the scrap rate estimates with the current historical average scrap rate, effective from January 1, 2015, the Company adjusted
the estimated scrap rate used to calculate the vessels' salvage value from $0.250 to $0.300 per lightweight ton. The impact of
the increase in the estimated scrap rate is a decrease in depreciation expense prospectively. The effect of this change in accounting
estimate, which did not require retrospective adoption as per ASC 250 "Accounting Changes and Error Corrections," was
to decrease depreciation expense by $5,388 and increase net income by $5,388 or $0.07 per common share, basic and diluted , for
the year ended December 31, 2015.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify">Management estimates the useful life
of the Company’s vessels to be 30 years from the date of initial delivery from the shipyard. Secondhand vessels are depreciated
from the date of their acquisition through their remaining estimated useful life. When regulations place limitations over the ability
of a vessel to trade on a worldwide basis, its remaining useful life is adjusted at the date such regulations are adopted.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify"><b><i>(k) Accrued Charter Revenue/Unearned
Revenue:</i></b> The Company records identified assets or liabilities associated with the acquisition of a vessel at fair value,
determined by reference to market data. The Company values any asset or liability arising from the market value of the time charters
assumed when a vessel is acquired from entities that are not under common control. This policy does not apply when a vessel is
acquired from entities that are under common control. The amount to be recorded as an asset or liability at the date of vessel
delivery is based on the difference between the current fair market value of the charter and the net present value of future contractual
cash flows. When the present value of the contractual cash flows of the time charter assumed is greater than its current fair value,
the difference is recorded as accrued charter revenue. When the opposite situation occurs, any difference, capped to the vessel’s
fair value on a charter free basis, is recorded as unearned revenue. Such assets and liabilities, respectively, are amortized as
a reduction of, or an increase in, revenue over the period of the time charter assumed.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify"><b><i>(l) Impairment of Long-Lived
Assets:</i></b> The Company uses ASC 360 “Property plant and equipment”, which addresses financial accounting and reporting
for the impairment or disposal of long-lived assets. The standard requires that long-lived assets and certain identifiable intangibles
held and used by an entity be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount
of the assets may not be recoverable.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify">As of December 31, 2014 and 2015, the
Company concluded that, as conditions in the worldwide shipping industry remain depressed, indicators existed which triggered the
existence of potential impairment of its long-lived assets. As a result, the Company performed an impairment assessment of the
Company’s long-lived assets by comparing the undiscounted projected net operating cash flows for each vessel to its respective
carrying value. The Company’s strategy is mainly to charter its vessels under long-term, fixed or variable rate time charters,
providing the Company with contracted future cash flows.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify">In developing estimates of future undiscounted
cash flows, the Company makes assumptions and estimates about the vessels’ future performance, with the significant assumptions
being related to time charter rates, vessels’ operating expenses, vessels’ capital expenditures, vessels’ residual
value, fleet utilization and the estimated remaining useful life of each vessel. The assumptions used to develop estimates of future
undiscounted cash flows are based on historical trends as well as future expectations.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify">The Company determines undiscounted
projected net operating cash flows for each vessel and compares it to the vessel’s carrying value. To the extent impairment
indicators are present, the undiscounted projected net operating cash flows are determined by considering the charter revenues
from existing time charters for the fixed fleet days and an estimated daily time charter rate for the unfixed days (based on the
most recent ten year historical average rates) over the remaining estimated life of the vessel assumed to be 30 years from the
delivery of the vessel from the shipyard, expected outflows for vessels’ operating expenses assuming an expected increase
in expenses based on the Company’s historical data and an average inflation rate of 2.76% (in line with the average world
Consumer Price Index forecasted), planned dry-docking and special survey expenditures, management fees expenditures and fleet utilization
of 99.2% (excluding the scheduled off-hire days for planned dry-dockings and special surveys which are determined separately ranging
from 16 to 30 days depending on the size and age of each vessel) based on historical experience. The Company considers the most
recent ten year historical average rates to be a reasonable estimation of expected future charter rates over the remaining useful
life of the Company's vessels since such historical average represents a full shipping cycle that captures the highs and lows of
the market. The Company utilizes the standard deviation in order to eliminate the outliers in the period before computing the historic
ten year average rates. The salvage value used in the impairment test is estimated at approximately $0.300 per light weight ton
in accordance with the vessels’ depreciation policy.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify">The Company’s assessment concluded
that no impairment of vessels existed as of December 31, 2013, 2014 and 2015, as the undiscounted projected net operating cash
flows per vessel exceeded the carrying value of each vessel. No impairment loss was recorded in 2013, 2014 or 2015.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0 0pt; text-align: justify; text-indent: 0pt"><b><i>(m) Accounting
for Special Survey and Dry-docking Costs:</i></b> The Company follows the deferral method of accounting for special survey and
dry-docking costs whereby actual costs incurred are deferred and are amortized on a straight-line basis over the period through
the date the next survey is scheduled to become due. Costs deferred are limited to actual costs incurred at the yard and parts
used in the dry-docking or special survey. If a survey is performed prior to the scheduled date, the remaining unamortized balances
are immediately written off. Unamortized balances of vessels that are sold are written-off and included in the calculation of the
resulting gain or loss in the period of the vessel’s sale. Furthermore, unamortized dry-docking and special survey balances
of vessels that are classified as Assets held for sale and are not recoverable as of the date of such classification are immediately
written-off to the consolidated statement of income.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify"><b><i>(n) Financing Costs:</i></b>
Costs associated with new loans or refinancing of existing loans, including fees paid to lenders or required to be paid to third
parties on the lender’s behalf for obtaining new loans or refinancing existing loans, are recorded as deferred charges. Such
fees are deferred and amortized to interest and finance costs during the life of the related debt using the effective interest
method. Unamortized fees relating to loans repaid or refinanced, meeting the criteria of debt extinguishment, are expensed in the
period the repayment or refinancing is made.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify"><b><i>(o) Concentration of Credit Risk:</i></b>
Financial instruments, which potentially subject the Company to significant concentrations of credit risk, consist principally
of cash and cash equivalents, accounts receivable (included in current and non-current assets), investments in affiliates, equity
securities, debt securities and derivative contracts (interest rate swaps and foreign currency contracts). The Company places its
cash and cash equivalents, consisting mostly of deposits, with high credit rated financial institutions. The Company performs periodic
evaluations of the relative credit standing of those financial institutions. The Company is exposed to credit risk in the event
of non-performance by counterparties to derivative instruments; however, the Company limits its exposure by diversifying among
counterparties with high credit ratings. The Company limits its credit risk with accounts receivable, investments in affiliates
and equity and debt securities by performing ongoing credit evaluations of its customers’, affiliates’ and investees’
financial condition and generally does not require collateral for its accounts receivable.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify"><b><i>(p) Voyage Revenues:</i></b>
Voyage revenues are generated from time charter agreements and are usually paid 15 days in advance. Time charter agreements with
the same charterer are accounted for as separate agreements according to the terms and conditions of each agreement. Time charter
revenues over the term of the charter are recorded as service is provided, when they become fixed and determinable.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify">Revenues from time charter agreements
providing for varying annual rates are accounted for as operating leases and thus recognized on a straight-line basis as the average
revenue over the rental periods of such agreements, as service is performed. A voyage is deemed to commence upon the completion
of discharge of the vessel’s previous cargo and the sea passage for the next fixed cargo and is deemed to end upon the completion
of discharge of the current cargo, provided an agreed non-cancelable charter agreement between the Company and the charterer is
in existence, the charter rate is fixed or determinable and collectability is reasonably assured. Unearned revenue includes cash
received prior to the balance sheet date for which all criteria to recognize as revenue have not been met, including any unearned
revenue resulting from charter agreements providing for varying annual rates, which are accounted for on a straight-line basis.
Unearned revenue also includes the unamortized balance of the liability associated with the acquisition of second-hand vessels
with time charters attached which were acquired at values below fair market value at the date the acquisition agreement is consummated.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify">Revenues for 2013, 2014 and 2015, derived
from significant charterers individually accounting for 10% or more of revenues (in percentages of total revenues) were as follows:</p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td colspan="3"> </td><td style="font: bold 8pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td colspan="3" style="font: bold 8pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">2013</td><td style="font: bold 8pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td colspan="3" style="font: bold 8pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">2014</td><td style="font: bold 8pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td colspan="3" style="font: bold 8pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">2015</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 1%; font: bold 8pt Times New Roman, Times, Serif; text-align: left"> </td><td style="width: 20%; font: bold 8pt Times New Roman, Times, Serif; text-align: left"><font style="font-size: 8pt"><b>A</b></font></td><td style="width: 1%; font: bold 8pt Times New Roman, Times, Serif; text-align: left"> </td><td style="width: 5%; font: 8pt Times New Roman, Times, Serif"> </td>
<td style="width: 1%; font: 8pt Times New Roman, Times, Serif; text-align: left"> </td><td style="width: 19%; font: 8pt Times New Roman, Times, Serif; text-align: right">24</td><td style="width: 1%; font: 8pt Times New Roman, Times, Serif; text-align: left">%</td><td style="width: 5%; font: 8pt Times New Roman, Times, Serif"> </td>
<td style="width: 1%; font: 8pt Times New Roman, Times, Serif; text-align: left"> </td><td style="width: 19%; font: 8pt Times New Roman, Times, Serif; text-align: right">29</td><td style="width: 1%; font: 8pt Times New Roman, Times, Serif; text-align: left">%</td><td style="width: 5%; font: 8pt Times New Roman, Times, Serif"> </td>
<td style="width: 1%; font: 8pt Times New Roman, Times, Serif; text-align: left"> </td><td style="width: 19%; font: 8pt Times New Roman, Times, Serif; text-align: right">31</td><td style="width: 1%; font: 8pt Times New Roman, Times, Serif; text-align: left">%</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font: bold 8pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: bold 8pt Times New Roman, Times, Serif; text-align: left"><font style="font-size: 8pt"><b>B</b></font></td><td style="font: bold 8pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 8pt Times New Roman, Times, Serif"> </td>
<td style="font: 8pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 8pt Times New Roman, Times, Serif; text-align: right">31</td><td style="font: 8pt Times New Roman, Times, Serif; text-align: left">%</td><td style="font: 8pt Times New Roman, Times, Serif"> </td>
<td style="font: 8pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 8pt Times New Roman, Times, Serif; text-align: right">26</td><td style="font: 8pt Times New Roman, Times, Serif; text-align: left">%</td><td style="font: 8pt Times New Roman, Times, Serif"> </td>
<td style="font: 8pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 8pt Times New Roman, Times, Serif; text-align: right">26</td><td style="font: 8pt Times New Roman, Times, Serif; text-align: left">%</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font: bold 8pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: bold 8pt Times New Roman, Times, Serif; text-align: left"><font style="font-size: 8pt"><b>C</b></font></td><td style="font: bold 8pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 8pt Times New Roman, Times, Serif"> </td>
<td style="font: 8pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 8pt Times New Roman, Times, Serif; text-align: right">16</td><td style="font: 8pt Times New Roman, Times, Serif; text-align: left">%</td><td style="font: 8pt Times New Roman, Times, Serif"> </td>
<td style="font: 8pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 8pt Times New Roman, Times, Serif; text-align: right">14</td><td style="font: 8pt Times New Roman, Times, Serif; text-align: left">%</td><td style="font: 8pt Times New Roman, Times, Serif"> </td>
<td style="font: 8pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 8pt Times New Roman, Times, Serif; text-align: right">13</td><td style="font: 8pt Times New Roman, Times, Serif; text-align: left">%</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font: bold 8pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: bold 8pt Times New Roman, Times, Serif; text-align: left"><font style="font-size: 8pt"><b>D</b></font></td><td style="padding-bottom: 1pt; font: bold 8pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 8pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font: 8pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 8pt Times New Roman, Times, Serif; text-align: right">13</td><td style="padding-bottom: 1pt; font: 8pt Times New Roman, Times, Serif; text-align: left">%</td><td style="font: 8pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font: 8pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 8pt Times New Roman, Times, Serif; text-align: right">18</td><td style="padding-bottom: 1pt; font: 8pt Times New Roman, Times, Serif; text-align: left">%</td><td style="font: 8pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font: 8pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 8pt Times New Roman, Times, Serif; text-align: right">18</td><td style="padding-bottom: 1pt; font: 8pt Times New Roman, Times, Serif; text-align: left">%</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font: bold 8pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: bold 8pt Times New Roman, Times, Serif; text-align: left"><font style="font-size: 8pt"><b>Total</b></font></td><td style="padding-bottom: 1pt; font: bold 8pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 8pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font: 8pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 8pt Times New Roman, Times, Serif; text-align: right">84</td><td style="padding-bottom: 1pt; font: 8pt Times New Roman, Times, Serif; text-align: left">%</td><td style="font: 8pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font: 8pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 8pt Times New Roman, Times, Serif; text-align: right">87</td><td style="padding-bottom: 1pt; font: 8pt Times New Roman, Times, Serif; text-align: left">%</td><td style="font: 8pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font: 8pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 8pt Times New Roman, Times, Serif; text-align: right">88</td><td style="padding-bottom: 1pt; font: 8pt Times New Roman, Times, Serif; text-align: left">%</td></tr>
</table>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify"><b><i>(q) Voyage Expenses:</i></b>
Voyage expenses primarily consist of port, canal and bunker expenses that are unique to a particular charter and are paid for by
the charterer under time charter arrangements or by the Company under voyage charter arrangements and commissions and fees, which
are always paid for by the Company, regardless of the charter type. All voyage and vessel operating expenses are expensed as incurred,
except for commissions. Commissions are deferred over the related voyage charter period to the extent revenue has been deferred
since commissions are earned as the Company’s revenues are earned.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify"><b><i>(r) Repairs and Maintenance:</i></b>
All repair and maintenance expenses, including underwater inspection expenses, are expensed in the year incurred. Such costs are
included in vessel operating expenses in the accompanying consolidated statements of income.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify"><b><i>(s) Derivative Financial Instruments:</i></b>
The Company enters into interest rate swap contracts to manage its exposure to fluctuations of interest rate risks associated with
specific borrowings. Interest rate differentials paid or received under these swap agreements are recognized as part of the interest
expense related to the hedged debt. All derivatives are recognized in the consolidated financial statements at their fair value.
On the inception date of the derivative contract, the Company designates the derivative as a hedge of a forecasted transaction
or the variability of cash flow to be paid (“cash flow” hedge). Changes in the fair value of a derivative that is qualified,
designated and highly effective as a cash flow hedge are recorded in the consolidated statement of comprehensive income until earnings
are affected by the forecasted transaction or the variability of cash flow and are then reported in earnings. Changes in the fair
value of undesignated derivative instruments and the ineffective portion of designated derivative instruments are reported in earnings
in the period in which those fair value changes have occurred. Realized gains or losses on early termination of the derivative
instruments are also classified in earnings in the period of termination of the respective derivative instrument. The Company may
re-designate an undesignated hedge after its inception as a hedge but then will consider its non-zero value at re-designation in
its assessment of effectiveness of the cash flow hedge.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify">The Company formally documents all
relationships between hedging instruments and hedged items, as well as the risk-management objective and strategy for undertaking
various hedge transactions.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify">This process includes linking all derivatives
that are designated as cash flow hedges to specific forecasted transactions or variability of cash flow.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify">The Company also formally assesses,
both at the hedge’s inception and, on an ongoing basis, whether the derivatives that are used in hedging transactions are
highly effective in offsetting changes in cash flow of hedged items. The Company considers a hedge to be highly effective if the
change in fair value of the derivative hedging instrument is within 80% to 125% of the opposite change in the fair value of the
hedged item attributable to the hedged risk. When it is determined that a derivative is not highly effective as a hedge or that
it has ceased to be a highly effective hedge, the Company discontinues hedge accounting prospectively, in accordance with ASC 815
“Derivatives and Hedging”.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify">The Company also enters into forward
exchange rate contracts to manage its exposure to currency exchange risk on certain foreign currency liabilities. The Company has
not designated these forward exchange rate contracts for hedge accounting.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify"><b><i>(t) Earnings per Share:</i></b>
Basic earnings per share are computed by dividing net income attributable to common equity holders by the weighted average number
of shares of common stock outstanding during the year. Diluted earnings per share reflects the potential dilution that could occur
if securities or other contracts to issue common stock were exercised. The Company had no dilutive securities outstanding during
the three-year period ended December 31, 2015. Earnings per share attributable to common equity holders are adjusted by the contractual
amount of dividends related to the preferred stock holders that accrue for the period.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify"><b><i>(u) Fair Value Measurements:</i></b>
The Company adopted, as of January 1, 2008, ASC 820 “Fair Value Measurements and Disclosures”, which defines and provides
guidance as to the measurement of fair value. This standard creates a hierarchy of measurement and indicates that, when possible,
fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between
market participants. The fair value hierarchy gives the highest priority (Level 1) to quoted prices in active markets and the lowest
priority (Level 3) to unobservable data, for example, the reporting entity’s own data. Under the standard, fair value measurements
are separately disclosed by level within the fair value hierarchy. The standard applies when assets or liabilities in the financial
statements are to be measured at fair value, but does not require additional use of fair value beyond the requirements in other
accounting principles (Notes 18 and 19).</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify">ASC 825 “Financial Instruments”,
permits companies to report certain financial assets and financial liabilities at fair value. ASC 825 was effective for the Company
as of January 1, 2008, at which time the Company could elect to apply the standard prospectively and measure certain financial
instruments at fair value. The Company has evaluated the guidance contained in ASC 825, and has elected not to report any existing
financial assets or liabilities at fair value that are not already so reported; therefore, the adoption of the statement had no
impact on its financial position and results of operations. The Company retains the ability to elect the fair value option for
certain future assets and liabilities acquired under this standard.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify"><b><i>(v) Segment Reporting:</i></b>
The Company reports financial information and evaluates its operations by charter revenues and not by the length of ship employment
for its customers, i.e., spot or time charters. The Company does not use discrete financial information to evaluate the operating
results for each such type of charter. Although revenue can be identified for these types of charters, management cannot and does
not identify expenses, profitability or other financial information for these charters. Furthermore, when the Company charters
a vessel to a charterer, the charterer is free to trade the vessel worldwide (subject to certain agreed exclusions) and, as a result,
the disclosure of geographic information is impracticable. As a result, management, including the chief operating decision maker,
reviews operating results solely by revenue per day and operating results of the fleet and thus the Company has determined that
it operates under one reportable segment.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify"><b><i>(w) Investments in Affiliates:</i></b>
Investments in the common stock of entities, in which the Company has significant influence over operating and financial policies,
are accounted for using the equity method. Under this method, the investment in the affiliate is initially recorded at cost and
is adjusted to recognize the Company’s share of the earnings or losses of the investee after the acquisition date and is
adjusted for impairment whenever facts and circumstances indicate that a decline in fair value below the cost basis is other than
temporary. The amount of the adjustment is included in the determination of net income / (loss). Dividends received from an affiliate
reduce the carrying amount of the investment. When the Company’s share of losses in an affiliate equals or exceeds its interest
in the affiliate, the Company does not recognize further losses unless the Company has incurred obligations or made payments on
behalf of the affiliate.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify"><b><i>(x) Capital leases: </i></b>Financial
Accounting Standards Board (“FASB”) ASC 840 classifies leases as capital or operating. Capital leases are accounted
for as the acquisition of an asset and the incurrence of an obligation by the lessee and as a sale or financing by the lessor.
All other leases are accounted for as operating leases. The determination of whether an arrangement is (or contains) a capital
lease is based on the substance of the arrangement at the inception date and is assessed in accordance with the criteria set in
ASC 840-10-25-1.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify">Capital leases are capitalized at the
commencement of the lease at the lower between the fair value of the leased asset and the present value of the minimum lease payments.
Lease payments are apportioned between finance charges and reduction of the lease liability. Finance charges are recognized in
finance costs in the consolidated statement of income. The lease payments are allocated between liability and finance costs to
achieve a constant rate on the capital balance outstanding. If the lease agreement transfers the ownership of the leased asset
to the lessee, then the asset is depreciated over its useful economic life (estimated at 30 years), otherwise it is depreciated
over the lease term.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify">For sale and lease back transactions,
when the fair value of the asset sold is more than its carrying amount, any indicated loss on the sale is in substance a prepayment
of rent and thus, in accordance with ASC 840-40-35-4, the Company defers this prepaid rental and amortizes it over the lease term.
In case the fair value of the asset sold is less than its carrying amount, any indicated loss on the sale is recognized in the
consolidated statement of income as incurred.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify">Operating lease payments are recognized
as an operating expense in the consolidated statement of income on a straight-line basis over the lease term.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify"><b><i>(y) Investments in Equity and
Debt Securities:</i></b> The Company classifies debt securities and equity securities pursuant to the provisions of ASC 320-10-25-1
“Investments–Debt and Equity Securities”, into one of the following three categories:</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify">a. Trading securities: If the Company
acquires a security with the intent of selling it in the near term, the security is classified as trading,</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify">b. Available-for-sale securities: Investments
in debt securities and equity securities that have readily determinable fair values not classified as trading securities or as
held-to-maturity securities are classified as available-for-sale securities and,</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify">c. Held-to-maturity securities: Investments
in debt securities are classified as held-to-maturity only if the Company has the positive intent and ability to hold these securities
to maturity.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify">In order to determine the applicable
category, the Company considers the following: (i) if the Company intends to sell the security, (ii) whether it is more likely
than not that the Company will be required to sell the security before the recovery of its (entire) cost, and (iii) whether the
security has a readily determinable fair value or not.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify">Debt and equity securities which are
decided on inception to be accounted for as trading securities or available-for-sale securities are initially recognized at cost
and subsequently are measured at fair value. Declines in the fair value of trading securities are recognized in earnings, while
declines in the fair value of available-for-sale securities are recorded in Other Comprehensive Income and affect earnings when
the securities are disposed. Held-to-maturity debt securities are initially recognized at cost and subsequently are measured at
amortized cost, less impairment. The amortized cost is adjusted for amortization of premiums and accretion of discounts to maturity.
Management evaluates debt securities held-to-maturity for other than temporary impairment at each reporting date. In evaluating
whether a decline in value is other than temporary, the Company considers several factors including, but not limited, to the following:
(i) the extent of the duration of the decline; (ii) the reasons for the decline in value and (iii) the financial condition of and
near-term prospects of the issuer. An investment in debt or equity securities is considered impaired if the fair value of the investment
is less than its carrying value, in which case, the Company recognizes in earnings an impairment loss equal to the difference between
their carrying value and their fair value.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify">Equity securities with no readily determinable
fair value, which relate to an entity in which the Company does not have the ability to exercise significant influence, are accounted
for pursuant to the provisions of ASC 325-20 “Investments - Other–Cost Method Investments”. The Company initially
recognizes such equity securities at cost. Subsequently, any dividends distributed by the investee to the Company are recognized
as income when received, but only to the extent they represent net accumulated earnings of the investee since the Company’s
initial recognition of the investment. Net accumulated earnings are recognized as income by the Company only if they are distributed
to the investor as dividends. Any dividends received in excess of net accumulated earnings are recognized as a reduction in the
carrying amount of the investment. Management evaluates the equity securities for other-than-temporary-impairment at each reporting
date. An investment in cost method equity securities is considered impaired if the fair value of the investment is less than its
carrying value, in which case the Company recognizes in earnings an impairment loss equal to the difference between their carrying
value and their fair value. Consideration is given to significant deterioration in the earnings performance, or business prospects
of the investee, significant adverse change in the regulatory, economic, or technological environment of the investee, significant
adverse change in the general market condition in which the investee operates, as well as factors that raise significant concerns
about the investee’s ability to continue as a going concern.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify"><b><i>(z) Stock Based Compensation:</i></b>
The Company accounts for stock based payment awards granted to Costamare Shipping Company S.A. and Costamare Shipping Services
Ltd. (Note 3 and 14a), for the services provided by these entities, following the guidance in ASC 505-50 “Equity Based Payments
to Non-Employees”. The fair value of the stock based payment awards is recognized in the line item General and administrative
expenses - related parties in the consolidated statements of income.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify"><b>New accounting pronouncements</b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify; text-indent: 0pt"><b><i>Debt issuance
costs</i></b>: In April 2015, Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”)
No. 2015-03 – Interest – Imputation of Interest to simplify the presentation of debt issuance costs. Current guidance
generally requires entities to capitalize costs paid to third parties that are directly related to issuing debt and that otherwise
wouldn’t be incurred and present those amounts separately as deferred charges (i.e., assets). However, the discount or premium
resulting from the difference between the net proceeds received upon debt issuance and the amount payable at maturity is presented
as a direct deduction from or an addition to the face amount of the debt. The new guidance simplifies financial reporting by eliminating
the different presentation requirements for debt issuance costs and debt discounts or premiums.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify">The guidance is effective for public
business entities for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within
those fiscal years. Upon adoption, an entity must apply the new guidance retrospectively to all prior periods presented in the
financial statements. Early adoption is permitted. The Company is planning to apply ASU No. 2015-03 as of January 1, 2016.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><br />
<b><i>Inventories:</i></b> In July 2015, the FASB issued ASU No. 2015-11, Simplifying the Measurement of Inventory to simplify
the measurement of inventory using first-in, first out (FIFO) or average cost method. According to this ASU an entity should measure
inventory at the lower of cost and net realizable value. Net realizable value is the estimated selling price less reasonably predictable
costs of completion, disposal and transportation. This update is effective for public entities with reporting periods beginning
after December 15, 2016. Early adoption is permitted. The Company believes that the implementation of this update will not
have any material impact on its financial statements and has not elected the early adoption.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Consolidation</i></b>: In February 2015,
the FASB issued ASU No. 2015-02 Consolidation (Topic 810), Amendments to the Consolidation Analysis. The guidance eliminates the
deferral of FAS 167, which has allowed entities with interests in certain investment funds to follow the previous consolidation
guidance in FIN 46(R), and makes other changes to both the variable interest model and the voting model. While the guidance is
aimed at asset managers, it will affect all reporting entities that have variable interests in other legal entities (e.g., limited
partnerships, similar entities and certain corporations). In some cases, consolidation conclusions will change. In other cases,
reporting entities will need to provide additional disclosures about entities that currently aren’t considered variable interest
entities (“VIEs”) but will be considered VIEs under the new guidance provided they have a variable interest in those
VIEs. The guidance is effective for public business entities for fiscal years, and for interim periods within those fiscal years,
beginning after December 15, 2015. Early adoption is permitted, including adoption in an interim period. A reporting entity must
apply the amendments using a modified retrospective approach by recording a cumulative-effect adjustment to equity as of the beginning
of the period of adoption or apply the amendments retrospectively. The Company is currently evaluating the impact, if any, of the
adoption of this new standard.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Revenue from Contracts with Customers:</i></b>
On August 12, 2015, the FASB issued ASU 2015-14, “Revenue from Contracts with Customers”, which amends ASU No.
2014-09 (issued by the FASB on May 28, 2014 and which outlines a single comprehensive model for entities to use in accounting for
revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific
guidance. This standard is effective for public entities with reporting periods beginning after December 15, 2017. Early application
is permitted only as of annual reporting periods (including interim reporting periods within those periods) beginning after December 15,
2016. The Company is currently evaluating the impact, if any, of the adoption of this new standard.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 2pt 0"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 2pt 0"><b><i>Leases:</i></b> In February 2016, the FASB issued ASU No.
2016-02 “Leases”, which improves transparency and comparability among companies by requiring lessees to recognize
a lease liability and a corresponding lease asset for virtually all lease contracts. The new lease standard does not substantially
change lessor accounting. It also requires additional disclosures about leasing arrangements. For public companies, the
new standard is effective for interim and annual periods beginning after December 15, 2018 and requires a modified retrospective
approach to adoption. Early adoption is permitted. The Company has not yet determined what impact, if any, the adoption of
the new standard will have on its consolidated financial position, results of operations or cash flows.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 2pt 0"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 2pt 0"><b><i>Going Concern: </i></b>In August 2014, the FASB issued
ASU No. 2014-15– “Presentation of Financial Statements - Going Concern”. ASU 2014-15 provides guidance about
management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as
a going concern and to provide related footnote disclosures. ASU 2014-15 requires an entity’s management to evaluate at each
reporting period based on the relevant conditions and events that are known at the date the financial statements are issued, whether
there are conditions or events that raise substantial doubt about the entity’s ability to continue as a going concern within
one year after the date that the financial statements are issued and to disclose the necessary information. ASU 2014-15 is effective
for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. Early application
is permitted.</p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td colspan="3"> </td><td style="font: bold 8pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td colspan="3" style="font: bold 8pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">2013</td><td style="font: bold 8pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td colspan="3" style="font: bold 8pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">2014</td><td style="font: bold 8pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td colspan="3" style="font: bold 8pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">2015</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 1%; font: bold 8pt Times New Roman, Times, Serif; text-align: left"> </td><td style="width: 20%; font: bold 8pt Times New Roman, Times, Serif; text-align: left"><font style="font-size: 8pt"><b>A</b></font></td><td style="width: 1%; font: bold 8pt Times New Roman, Times, Serif; text-align: left"> </td><td style="width: 5%; font: 8pt Times New Roman, Times, Serif"> </td>
<td style="width: 1%; font: 8pt Times New Roman, Times, Serif; text-align: left"> </td><td style="width: 19%; font: 8pt Times New Roman, Times, Serif; text-align: right">24</td><td style="width: 1%; font: 8pt Times New Roman, Times, Serif; text-align: left">%</td><td style="width: 5%; font: 8pt Times New Roman, Times, Serif"> </td>
<td style="width: 1%; font: 8pt Times New Roman, Times, Serif; text-align: left"> </td><td style="width: 19%; font: 8pt Times New Roman, Times, Serif; text-align: right">29</td><td style="width: 1%; font: 8pt Times New Roman, Times, Serif; text-align: left">%</td><td style="width: 5%; font: 8pt Times New Roman, Times, Serif"> </td>
<td style="width: 1%; font: 8pt Times New Roman, Times, Serif; text-align: left"> </td><td style="width: 19%; font: 8pt Times New Roman, Times, Serif; text-align: right">31</td><td style="width: 1%; font: 8pt Times New Roman, Times, Serif; text-align: left">%</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font: bold 8pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: bold 8pt Times New Roman, Times, Serif; text-align: left"><font style="font-size: 8pt"><b>B</b></font></td><td style="font: bold 8pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 8pt Times New Roman, Times, Serif"> </td>
<td style="font: 8pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 8pt Times New Roman, Times, Serif; text-align: right">31</td><td style="font: 8pt Times New Roman, Times, Serif; text-align: left">%</td><td style="font: 8pt Times New Roman, Times, Serif"> </td>
<td style="font: 8pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 8pt Times New Roman, Times, Serif; text-align: right">26</td><td style="font: 8pt Times New Roman, Times, Serif; text-align: left">%</td><td style="font: 8pt Times New Roman, Times, Serif"> </td>
<td style="font: 8pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 8pt Times New Roman, Times, Serif; text-align: right">26</td><td style="font: 8pt Times New Roman, Times, Serif; text-align: left">%</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font: bold 8pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: bold 8pt Times New Roman, Times, Serif; text-align: left"><font style="font-size: 8pt"><b>C</b></font></td><td style="font: bold 8pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 8pt Times New Roman, Times, Serif"> </td>
<td style="font: 8pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 8pt Times New Roman, Times, Serif; text-align: right">16</td><td style="font: 8pt Times New Roman, Times, Serif; text-align: left">%</td><td style="font: 8pt Times New Roman, Times, Serif"> </td>
<td style="font: 8pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 8pt Times New Roman, Times, Serif; text-align: right">14</td><td style="font: 8pt Times New Roman, Times, Serif; text-align: left">%</td><td style="font: 8pt Times New Roman, Times, Serif"> </td>
<td style="font: 8pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 8pt Times New Roman, Times, Serif; text-align: right">13</td><td style="font: 8pt Times New Roman, Times, Serif; text-align: left">%</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font: bold 8pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: bold 8pt Times New Roman, Times, Serif; text-align: left"><font style="font-size: 8pt"><b>D</b></font></td><td style="padding-bottom: 1pt; font: bold 8pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 8pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font: 8pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 8pt Times New Roman, Times, Serif; text-align: right">13</td><td style="padding-bottom: 1pt; font: 8pt Times New Roman, Times, Serif; text-align: left">%</td><td style="font: 8pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font: 8pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 8pt Times New Roman, Times, Serif; text-align: right">18</td><td style="padding-bottom: 1pt; font: 8pt Times New Roman, Times, Serif; text-align: left">%</td><td style="font: 8pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font: 8pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 8pt Times New Roman, Times, Serif; text-align: right">18</td><td style="padding-bottom: 1pt; font: 8pt Times New Roman, Times, Serif; text-align: left">%</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font: bold 8pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: bold 8pt Times New Roman, Times, Serif; text-align: left"><font style="font-size: 8pt"><b>Total</b></font></td><td style="padding-bottom: 1pt; font: bold 8pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 8pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font: 8pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 8pt Times New Roman, Times, Serif; text-align: right">84</td><td style="padding-bottom: 1pt; font: 8pt Times New Roman, Times, Serif; text-align: left">%</td><td style="font: 8pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font: 8pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 8pt Times New Roman, Times, Serif; text-align: right">87</td><td style="padding-bottom: 1pt; font: 8pt Times New Roman, Times, Serif; text-align: left">%</td><td style="font: 8pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font: 8pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 8pt Times New Roman, Times, Serif; text-align: right">88</td><td style="padding-bottom: 1pt; font: 8pt Times New Roman, Times, Serif; text-align: left">%</td></tr>
</table>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 8pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td style="text-align: justify"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Vessel Cost</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: justify; border-bottom: Black 1pt solid"><p style="font: 8pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center"><b>Accumulated</b></p> <p style="font: 8pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center"><b>Depreciation</b></p></td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: justify; border-bottom: Black 1pt solid"><p style="font: 8pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center"><b>Net Book</b></p> <p style="font: 8pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center"><b>Value</b></p></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 46%; font-weight: bold; text-align: justify; padding-bottom: 1pt; text-indent: -0.25pt">Balance, January 1, 2013</td><td style="width: 5%; font-weight: bold; padding-bottom: 1pt"> </td>
<td style="width: 1%; border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="width: 11%; border-bottom: Black 1pt solid; font-weight: bold; text-align: right">2,304,036</td><td style="width: 1%; padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="width: 5%; font-weight: bold; padding-bottom: 1pt"> </td>
<td style="width: 1%; border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="width: 11%; border-bottom: Black 1pt solid; font-weight: bold; text-align: right">(721,691</td><td style="width: 1%; padding-bottom: 1pt; font-weight: bold; text-align: left">)</td><td style="width: 5%; font-weight: bold; padding-bottom: 1pt"> </td>
<td style="width: 1%; border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="width: 11%; border-bottom: Black 1pt solid; font-weight: bold; text-align: right">1,582,345</td><td style="width: 1%; padding-bottom: 1pt; font-weight: bold; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; text-indent: -0.25pt">Depreciation</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(89,903</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(89,903</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: justify; text-indent: -0.25pt">Vessel acquisitions and other vessels’ costs</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">51,853</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">51,853</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; text-indent: -0.25pt">Transfer from advances for vessel acquisitions</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">689,112</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">689,112</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: justify; text-indent: -0.25pt">Derecognition of vessels</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(29,659</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">53</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(29,606</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; padding-bottom: 1pt; text-indent: -0.25pt">Disposals</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(54,343</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">37,930</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(16,413</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-weight: bold; text-align: justify; padding-bottom: 1pt; text-indent: -0.25pt">Balance, December 31, 2013</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">2,960,999</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">(773,611</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left">)</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">2,187,388</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; text-indent: -0.25pt">Depreciation</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(99,515</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(99,515</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: justify; text-indent: -0.25pt">Vessel acquisitions and other vessels’ costs</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">28,984</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">28,984</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; padding-bottom: 1pt; text-indent: -0.25pt">Disposals</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(36,543</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">18,506</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(18,037</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-weight: bold; text-align: justify; padding-bottom: 1pt; text-indent: -0.25pt">Balance, December 31, 2014</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">2,953,440</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">(854,620</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left">)</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">2,098,820</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; text-indent: -0.25pt">Depreciation</td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">—  </td><td style="font-weight: bold; text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(93,961</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(93,961</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: justify; text-indent: -0.25pt">Other vessels’ costs</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">2,758</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">2,758</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; padding-bottom: 1pt; text-indent: -0.25pt">Disposals</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(6,156</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">3,189</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(2,967</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-weight: bold; text-align: justify; padding-bottom: 2.5pt; text-indent: -0.25pt">Balance, December 31, 2015</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">2,950,042</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">(945,392</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">)</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">2,004,650</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td></tr>
</table>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td style="font-weight: bold"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="font-weight: bold; padding-bottom: 1pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><font style="font: 8pt Times New Roman, Times, Serif"><b>Financing
Costs</b></font></td><td style="font-weight: bold; padding-bottom: 1pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><font style="font: 8pt Times New Roman, Times, Serif"><b>Dry-docking
and Special Survey Costs</b></font></td><td style="font-weight: bold; padding-bottom: 1pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><font style="font: 8pt Times New Roman, Times, Serif"><b>Total</b></font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 46%; font-weight: bold; text-align: justify"><font style="font: 8pt Times New Roman, Times, Serif"><b>Balance,
January 1, 2013</b></font></td><td style="width: 5%; font-weight: bold"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; font-weight: bold; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="width: 11%; font-weight: bold; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"><b>11,313</b></font></td><td style="width: 1%; font-weight: bold; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="width: 5%; font-weight: bold"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; font-weight: bold; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="width: 11%; font-weight: bold; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"><b>22,786</b></font></td><td style="width: 1%; font-weight: bold; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="width: 5%; font-weight: bold"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; font-weight: bold; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="width: 11%; font-weight: bold; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"><b>34,099</b></font></td><td style="width: 1%; font-weight: bold; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify"><font style="font: 8pt Times New Roman, Times, Serif">Additions</font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">210</font></td><td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">6,189</font></td><td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">6,399</font></td><td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: justify"><font style="font: 8pt Times New Roman, Times, Serif">Amortization</font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">(1,569</font></td><td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif">)</font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">(8,084</font></td><td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif">)</font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">(9,653</font></td><td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify"><font style="font: 8pt Times New Roman, Times, Serif">Derecognition of deferred charges</font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">—  </font></td><td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">(553</font></td><td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif">)</font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">(553</font></td><td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: justify; padding-bottom: 1pt"><font style="font: 8pt Times New Roman, Times, Serif">Write-off</font></td><td style="padding-bottom: 1pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">—  </font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="padding-bottom: 1pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">(428</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif">)</font></td><td style="padding-bottom: 1pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">(428</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-weight: bold; text-align: justify; padding-bottom: 1pt"><font style="font: 8pt Times New Roman, Times, Serif"><b>Balance,
December 31, 2013</b></font></td><td style="font-weight: bold; padding-bottom: 1pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"><b>9,954</b></font></td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="font-weight: bold; padding-bottom: 1pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"><b>19,910</b></font></td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="font-weight: bold; padding-bottom: 1pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"><b>29,864</b></font></td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: justify"><font style="font: 8pt Times New Roman, Times, Serif">Additions</font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">2,055</font></td><td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">10,150</font></td><td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">12,205</font></td><td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify"><font style="font: 8pt Times New Roman, Times, Serif">Amortization</font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">(2,084</font></td><td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif">)</font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">(7,814</font></td><td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif">)</font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">(9,898</font></td><td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: justify; padding-bottom: 1pt"><font style="font: 8pt Times New Roman, Times, Serif">Write-off</font></td><td style="padding-bottom: 1pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">(2,023</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif">)</font></td><td style="padding-bottom: 1pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">(1,473</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif">)</font></td><td style="padding-bottom: 1pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">(3,496</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-weight: bold; text-align: justify; padding-bottom: 1pt"><font style="font: 8pt Times New Roman, Times, Serif"><b>Balance,
December 31, 2014</b></font></td><td style="font-weight: bold; padding-bottom: 1pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"><b>7,902</b></font></td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="font-weight: bold; padding-bottom: 1pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"><b>20,773</b></font></td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="font-weight: bold; padding-bottom: 1pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"><b>28,675</b></font></td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: justify"><font style="font: 8pt Times New Roman, Times, Serif">Additions</font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">—  </font></td><td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">9,461</font></td><td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">9,461</font></td><td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; padding-bottom: 1pt"><font style="font: 8pt Times New Roman, Times, Serif">Amortization</font></td><td style="padding-bottom: 1pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">(1,896</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif">)</font></td><td style="padding-bottom: 1pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">(7,425</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif">)</font></td><td style="padding-bottom: 1pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">(9,321</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-weight: bold; text-align: justify; padding-bottom: 2.5pt"><font style="font: 8pt Times New Roman, Times, Serif"><b>Balance,
December 31, 2015</b></font></td><td style="font-weight: bold; padding-bottom: 2.5pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"><b>6,006</b></font></td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="font-weight: bold; padding-bottom: 2.5pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"><b>22,809</b></font></td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="font-weight: bold; padding-bottom: 2.5pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"><b>28,815</b></font></td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td></tr>
</table>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 8pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td style="text-align: justify"> </td><td> </td>
<td style="text-align: justify"> </td><td style="font-weight: bold"> </td>
<td colspan="3" style="font-weight: bold; text-align: center">Participation %</td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: center">Date Established</td></tr>
<tr style="vertical-align: bottom">
<td style="font-weight: bold; text-align: justify; border-bottom: Black 1pt solid">Entity</td><td style="padding-bottom: 1pt"> </td>
<td style="text-align: center; border-bottom: Black 1pt solid"><p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b> </b></p><p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Vessel/Hull</b></p></td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">December 31, 2015</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">/Acquired</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 22%; text-align: justify">Steadman Maritime Co.</td><td style="width: 5%; font-style: italic"> </td>
<td style="width: 21%; font-style: italic; text-align: center">Ensenada Express</td><td style="width: 5%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 19%; text-align: right">49</td><td style="width: 1%; text-align: left">%</td><td style="width: 5%"> </td>
<td style="width: 21%; text-align: center">July 1, 2013</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify">Marchant Maritime Co.</td><td style="font-style: italic"> </td>
<td style="font-style: italic; text-align: center">Padma</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">49</td><td style="text-align: left">%</td><td> </td>
<td style="text-align: center">July 8, 2013</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: justify">Horton Maritime Co.</td><td style="font-style: italic"> </td>
<td style="font-style: italic; text-align: center">Petalidi</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">49</td><td style="text-align: left">%</td><td> </td>
<td style="text-align: center">June 26, 2013</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify">Smales Maritime Co.</td><td style="font-style: italic"> </td>
<td style="font-style: italic; text-align: center">Elafonisos</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">49</td><td style="text-align: left">%</td><td> </td>
<td style="text-align: center">June 6, 2013</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: justify">Geyer Maritime Co.</td><td style="font-style: italic"> </td>
<td style="font-style: italic; text-align: center">Arkadia</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">49</td><td style="text-align: left">%</td><td> </td>
<td style="text-align: center">May 18, 2015</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify">Goodway Maritime Co.</td><td style="font-style: italic"> </td>
<td style="font-style: italic; text-align: center">Monemvasia</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">49</td><td style="text-align: left">%</td><td> </td>
<td style="text-align: center">September 22, 2015</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: justify">Kemp Maritime Co.</td><td> </td>
<td style="text-align: center">Hull NCP0113</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">49</td><td style="text-align: left">%</td><td> </td>
<td style="text-align: center">June 6, 2013</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify">Hyde Maritime Co.</td><td> </td>
<td style="text-align: center">Hull NCP0114</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">49</td><td style="text-align: left">%</td><td> </td>
<td style="text-align: center">June 6, 2013</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: justify">Skerrett Maritime Co.</td><td> </td>
<td style="text-align: center">Hull NCP0152</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">49</td><td style="text-align: left">%</td><td> </td>
<td style="text-align: center">December 23, 2013</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify">Ainsley Maritime Co.</td><td> </td>
<td style="text-align: center">Hull NCP0115</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">25</td><td style="text-align: left">%</td><td> </td>
<td style="text-align: center">June 25, 2013</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: justify">Ambrose Maritime Co.</td><td> </td>
<td style="text-align: center">Hull NCP0116</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">25</td><td style="text-align: left">%</td><td> </td>
<td style="text-align: center">June 25, 2013</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify">Benedict Maritime Co.</td><td> </td>
<td style="text-align: center">Hull HN2121</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">40</td><td style="text-align: left">%</td><td> </td>
<td style="text-align: center">October 16, 2013</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: justify">Bertrand Maritime Co.</td><td> </td>
<td style="text-align: center">Hull HN2122</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">40</td><td style="text-align: left">%</td><td> </td>
<td style="text-align: center">October 16, 2013</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify">Beardmore Maritime Co.</td><td> </td>
<td style="text-align: center">Hull HN2123</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">40</td><td style="text-align: left">%</td><td> </td>
<td style="text-align: center">December 23, 2013</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: justify">Schofield Maritime Co.</td><td> </td>
<td style="text-align: center">Hull HN2124</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">40</td><td style="text-align: left">%</td><td> </td>
<td style="text-align: center">December 23, 2013</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify">Fairbank Maritime Co.</td><td> </td>
<td style="text-align: center">Hull HN2125</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">40</td><td style="text-align: left">%</td><td> </td>
<td style="text-align: center">December 23, 2013</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: justify">Platt Maritime Co.</td><td> </td>
<td style="text-align: center">Hull YZJ1206</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">49</td><td style="text-align: left">%</td><td> </td>
<td style="text-align: center">May 18, 2015</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify">Sykes Maritime Co.</td><td> </td>
<td style="text-align: center">Hull YZJ1207</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">49</td><td style="text-align: left">%</td><td> </td>
<td style="text-align: center">May 18, 2015</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: justify">Connell Maritime Co.</td><td> </td>
<td style="text-align: center">n/a</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">40</td><td style="text-align: left">%</td><td> </td>
<td style="text-align: center">December 18, 2013</td></tr>
</table>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="font-weight: bold; padding-bottom: 1pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td colspan="3" style="font-weight: bold; border-bottom: Black 1pt solid"><font style="font: 8pt Times New Roman, Times, Serif"><b>December
31, 2014</b></font></td><td style="font-weight: bold; padding-bottom: 1pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td colspan="3" style="font-weight: bold; border-bottom: Black 1pt solid"><font style="font: 8pt Times New Roman, Times, Serif"><b>December
31, 2015</b></font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 50%; text-align: justify"><font style="font: 8pt Times New Roman, Times, Serif">Non-current assets</font></td><td style="width: 8%"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="width: 15%; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">177,220</font></td><td style="width: 1%; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="width: 8%"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="width: 15%; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">290,805</font></td><td style="width: 1%; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; padding-bottom: 1pt"><font style="font: 8pt Times New Roman, Times, Serif">Current assets</font></td><td style="padding-bottom: 1pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">13,267</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="padding-bottom: 1pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">11,969</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: justify; padding-bottom: 1pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="padding-bottom: 1pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">190,487</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="padding-bottom: 1pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">302,774</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: justify; padding-bottom: 1pt"><font style="font: 8pt Times New Roman, Times, Serif">Current liabilities</font></td><td style="padding-bottom: 1pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">6,283</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="padding-bottom: 1pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">5,335</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: justify; padding-bottom: 1pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="font-weight: bold; padding-bottom: 1pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td colspan="5" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center"><font style="font: 8pt Times New Roman, Times, Serif"><b>Years
ended December 31,</b></font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; padding-bottom: 1pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="font-weight: bold; padding-bottom: 1pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center"><font style="font: 8pt Times New Roman, Times, Serif"><b>2014</b></font></td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="font-weight: bold; padding-bottom: 1pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center"><font style="font: 8pt Times New Roman, Times, Serif"><b>2015</b></font></td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: justify; padding-bottom: 1pt"><font style="font: 8pt Times New Roman, Times, Serif">Voyage revenue</font></td><td style="padding-bottom: 1pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">12,449</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="padding-bottom: 1pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">14,218</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; padding-bottom: 1pt"><font style="font: 8pt Times New Roman, Times, Serif">Net loss</font></td><td style="font-weight: bold; padding-bottom: 1pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"><b>(6,360</b></font></td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"><b>)</b></font></td><td style="font-weight: bold; padding-bottom: 1pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"><b>(1,669</b></font></td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"><b>)</b></font></td></tr>
</table>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 8pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td colspan="9" style="font-weight: bold; border-bottom: Black 1pt solid">Borrower(s)</td><td colspan="2" style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold">December 31, 2014</td>
<td colspan="2" style="padding-bottom: 1pt; font-weight: bold"></td><td style="font-weight: bold; border-bottom: Black 1pt solid">December 31, 2015</td>
<td style="font-weight: bold; padding-bottom: 1pt"></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1pt"> </td><td style="text-align: right">1</td><td style="text-align: left; padding-bottom: 1pt"> </td>
<td style="text-align: left; padding-bottom: 1pt"> </td><td style="text-align: right; padding-bottom: 1pt">Credit Facility</td><td style="text-align: left; padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td>
<td style="text-align: left; padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="2" style="text-align: left; padding-bottom: 1pt"> </td><td style="text-align: right; border-bottom: Black 1pt solid">585,883</td><td style="text-align: left; padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td>
<td style="text-align: right; border-bottom: Black 1pt solid">495,993</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left"> </td><td style="text-align: right">2</td><td style="text-align: left"> </td>
<td style="text-align: left"> </td><td style="text-align: right">Term Loans:</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td> </td>
<td colspan="2" style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td>
<td style="text-align: left"> </td><td style="text-align: right">1</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">Costis Maritime Corporation and Christos Maritime Corporation</td><td> </td>
<td colspan="2" style="text-align: left"> </td><td style="text-align: right">91,500</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">82,500</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td>
<td style="text-align: left"> </td><td style="text-align: right">2</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">Mas Shipping Co.</td><td> </td>
<td colspan="2" style="text-align: left"> </td><td style="text-align: right">38,875</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">30,625</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td>
<td style="text-align: left"> </td><td style="text-align: right">3</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">Montes Shipping Co. and Kelsen Shipping Co.</td><td> </td>
<td colspan="2" style="text-align: left"> </td><td style="text-align: right">78,000</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">66,000</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td>
<td style="text-align: left"> </td><td style="text-align: right">4</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">Capetanissa Maritime Corporation</td><td> </td>
<td colspan="2" style="text-align: left"> </td><td style="text-align: right">50,000</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">45,000</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td>
<td style="text-align: left"> </td><td style="text-align: right">5</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">Rena Maritime Corporation</td><td> </td>
<td colspan="2" style="text-align: left"> </td><td style="text-align: right">47,500</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">42,500</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td>
<td style="text-align: left"> </td><td style="text-align: right">6</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">Costamare Inc.</td><td> </td>
<td colspan="2" style="text-align: left"> </td><td style="text-align: right">73,414</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">60,463</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td>
<td style="text-align: left"> </td><td style="text-align: right">7</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">Adele Shipping Co., Bastian Shipping Co. and Cadence Shipping Co.</td><td> </td>
<td colspan="2" style="text-align: left"> </td><td style="text-align: right">  -</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">-</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td>
<td style="text-align: left"> </td><td style="text-align: right">8</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">Costamare Inc.</td><td> </td>
<td colspan="2" style="text-align: left"> </td><td style="text-align: right">120,330</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">111,417</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td>
<td style="text-align: left"> </td><td style="text-align: right">9</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">Undine Shipping Co., Quentin Shipping Co. and Sander Shipping Co.</td><td> </td>
<td colspan="2" style="text-align: left"> </td><td style="text-align: right">208,826</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">193,545</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td>
<td style="text-align: left"> </td><td style="text-align: right">10</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">Raymond Shipping Co. and Terance Shipping Co.</td><td> </td>
<td colspan="2" style="text-align: left"> </td><td style="text-align: right">137,793</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">126,878</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1pt"> </td><td style="text-align: right"> </td><td style="text-align: left; padding-bottom: 1pt"> </td>
<td style="text-align: left; padding-bottom: 1pt"> </td><td style="text-align: right; padding-bottom: 1pt">11</td><td style="text-align: left; padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td>
<td style="text-align: left; padding-bottom: 1pt">Costamare Inc.</td><td style="padding-bottom: 1pt"> </td>
<td colspan="2" style="text-align: left; padding-bottom: 1pt"> </td><td style="text-align: right; border-bottom: Black 1pt solid">87,820</td><td style="text-align: left; padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td>
<td style="text-align: right; border-bottom: Black 1pt solid">68,170</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1pt"> </td><td style="text-align: right"> </td><td style="text-align: left; padding-bottom: 1pt"> </td>
<td style="text-align: left; padding-bottom: 1pt"> </td><td style="text-align: right; padding-bottom: 1pt"> </td><td style="text-align: left; padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="2" style="text-align: left; padding-bottom: 1pt"> </td><td style="text-align: right; border-bottom: Black 1pt solid">934,058</td><td style="text-align: left; padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td>
<td style="text-align: right; border-bottom: Black 1pt solid">827,098</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold">Total</td><td> </td>
<td colspan="2" style="text-align: left"> </td><td style="text-align: right">1,519,941</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">1,323,091</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1pt"> </td><td style="text-align: right"> </td><td style="text-align: left; padding-bottom: 1pt"> </td>
<td style="text-align: left; padding-bottom: 1pt"> </td><td style="text-align: right; padding-bottom: 1pt"> </td><td style="text-align: left; padding-bottom: 1pt"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="font-weight: bold; padding-bottom: 1pt">Less-current portion</td><td style="padding-bottom: 1pt"> </td>
<td colspan="2" style="text-align: left; padding-bottom: 1pt"> </td><td style="text-align: right; border-bottom: Black 1pt solid">(192,951</td><td style="text-align: left; padding-bottom: 1pt">)</td><td style="padding-bottom: 1pt"> </td>
<td style="text-align: right; border-bottom: Black 1pt solid">(185,259)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 2.5pt"> </td><td style="text-align: right"> </td><td style="text-align: left; padding-bottom: 2.5pt"> </td>
<td style="text-align: left; padding-bottom: 2.5pt"> </td><td style="text-align: right; padding-bottom: 2.5pt"> </td><td style="text-align: left; padding-bottom: 2.5pt"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td>
<td style="font-weight: bold; padding-bottom: 2.5pt">Long-term portion</td><td style="padding-bottom: 2.5pt"> </td>
<td colspan="2" style="text-align: left; padding-bottom: 2.5pt"> </td><td style="text-align: right; border-bottom: Black 2.5pt double">1,326,990</td><td style="text-align: left; padding-bottom: 2.5pt"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="text-align: right; border-bottom: Black 2.5pt double">1,137,832</td></tr>
</table>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 8pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td colspan="3" style="text-align: justify; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> <b>Year ending December 31,</b></font></td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Amount</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 1%; text-align: left"> </td><td style="width: 43%; text-align: left">2016</td><td style="width: 1%; text-align: left"> </td><td style="width: 10%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 43%; text-align: right">185,259</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left"> </td><td style="text-align: left">2017</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">185,259</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left"> </td><td style="text-align: left">2018</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">564,046</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left"> </td><td style="text-align: left">2019</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">70,396</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left"> </td><td style="text-align: left">2020</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">251,281</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left"> </td><td style="text-align: left">2021</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">66,850</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">1,323,091</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td></tr>
</table>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 8pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td style="text-align: justify"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">December 31, 2014</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">December 31, 2015</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 56%; text-align: justify; padding-left: 5.4pt">Prepaid lease rentals</td><td style="width: 8%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 12%; text-align: right">49,817</td><td style="width: 1%; text-align: left"> </td><td style="width: 8%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 12%; text-align: right">45,793</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; padding-bottom: 1pt; padding-left: 5.4pt">Less: Amortization of prepaid lease rentals</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(4,024</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(4,982</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-weight: bold; text-align: justify; padding-left: 5.4pt">Prepaid lease rentals</td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">45,793</td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">40,811</td><td style="font-weight: bold; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; padding-bottom: 1pt; padding-left: 5.4pt">Less: current portion</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(4,982</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(4,982</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-weight: bold; text-align: justify; padding-bottom: 2.5pt; padding-left: 5.4pt">Non-current portion</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">40,811</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">35,829</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td></tr>
</table>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 8pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td colspan="3" style="font-weight: bold; text-align: justify; border-bottom: Black 1pt solid">Year ending December 31,</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="font-weight: bold; text-align: justify; border-bottom: Black 1pt solid">Amount</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 1%; text-align: left"> </td><td style="width: 43%; text-align: left">2016</td><td style="width: 1%; text-align: left"> </td><td style="width: 10%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 43%; text-align: right">30,783</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left"> </td><td style="text-align: left">2017</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">30,698</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left"> </td><td style="text-align: left">2018</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">30,698</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left"> </td><td style="text-align: left">2019</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">30,699</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left"> </td><td style="text-align: left">2020</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">30,783</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left"> </td><td style="text-align: left"><font style="font-size: 8pt">2021 and thereafter</font></td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">176,769</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: left"><font style="font-size: 8pt"><b>Total </b></font></td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">330,430</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left"> </td><td style="text-align: left"><font style="font-size: 8pt">Less: Amount of interest</font></td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(96,806</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: left"><font style="font-size: 8pt"><b>Total lease payments</b></font></td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">233,624</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td></tr>
</table>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 8pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 70%; text-align: justify; padding-left: 5.4pt">Capital lease obligation – current</td><td style="width: 10%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 18%; text-align: right">14,534</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; padding-bottom: 1pt; padding-left: 5.4pt">Capital lease obligation – non current</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">219,090</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: justify; padding-bottom: 2.5pt; padding-left: 5.4pt"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">233,624</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td></tr>
</table>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 8pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td colspan="3" style="text-align: justify; border-bottom: Black 1pt solid"><p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b> </b></p><p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b> </b></p><p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Year ending December 31, </b></p></td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="font-weight: bold; text-align: justify; border-bottom: Black 1pt solid">Amount</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 1%; text-align: left"> </td><td style="width: 43%; text-align: left">2016</td><td style="width: 1%; text-align: left"> </td><td style="width: 10%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 43%; text-align: right">(9,430</td><td style="width: 1%; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left"> </td><td style="text-align: left">2017</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(11,336</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left"> </td><td style="text-align: left">2018</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(8,919</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left"> </td><td style="text-align: left">2019</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(5,684</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">(35,369</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">)</td></tr>
</table>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 8pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td style="text-align: justify"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">December 31, 2014</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">December 31, 2015</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 56%; text-align: justify">Hires collected in advance</td><td style="width: 8%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 12%; text-align: right">8,096</td><td style="width: 1%; text-align: left"> </td><td style="width: 8%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 12%; text-align: right">8,469</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; padding-bottom: 1pt">Charter revenue resulting from varying charter rates</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">34,287</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">36,395</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-weight: bold; text-align: justify">Total</td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">42,383</td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">44,864</td><td style="font-weight: bold; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-weight: bold; text-align: justify; padding-bottom: 1pt">Less current portion</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(12,929</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(18,356</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-weight: bold; text-align: justify; padding-bottom: 2.5pt">Non-current portion</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">29,454</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">26,508</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td></tr>
</table>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 8pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td colspan="3" style="font-weight: bold; text-align: justify; border-bottom: Black 1pt solid">Year ending December 31,</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="font-weight: bold; text-align: justify; border-bottom: Black 1pt solid">Amount</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 1%; text-align: left"> </td><td style="width: 43%; text-align: left">2016</td><td style="width: 1%; text-align: left"> </td><td style="width: 10%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 43%; text-align: right">446,325</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left"> </td><td style="text-align: left">2017</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">371,984</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left"> </td><td style="text-align: left">2018</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">198,759</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left"> </td><td style="text-align: left">2019</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">122,306</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left"> </td><td style="text-align: left">2020</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">93,841</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left"> </td><td style="text-align: left"><font style="font-size: 8pt">2021 and thereafter</font></td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">217,011</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">1,450,226</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td></tr>
</table>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 8pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td> </td>
<td style="font-weight: bold; text-align: center"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center"></td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">December 31,2013</td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center"></td>
<td style="font-weight: bold; text-align: center"></td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center"></td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">December 31, 2014</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="font-weight: bold; text-align: center"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center"></td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">December 31,2015</td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center"></td>
<td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: center"><b>Basic EPS</b></td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: center"><b>Basic EPS</b></td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: center"><b>Basic EPS</b></td><td style="text-align: left"> </td>
<td style="text-align: right"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="width: 46%; text-align: justify">Net income</td><td style="width: 5%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">103,087</td><td style="width: 1%; text-align: left"> </td><td style="width: 5%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">115,087</td><td style="width: 1%; text-align: left"> </td><td style="width: 5%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">143,764</td><td style="width: 1%; text-align: left"> </td>
<td style="text-align: right"></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: justify; padding-bottom: 1pt">Less: paid and accrued earnings allocated to Preferred Stock</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(1,536</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(11,909</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(17,903</td><td style="padding-bottom: 1pt; text-align: left">)</td>
<td style="text-align: right"></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; padding-bottom: 1pt">Net income available to common stockholders</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">101,551</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">103,178</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">125,861</td><td style="padding-bottom: 1pt; text-align: left"> </td>
<td style="text-align: right"></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: justify; padding-bottom: 1pt">Weighted average number of common shares, basic and diluted</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">74,800,000</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">74,800,000</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">75,027,474</td><td style="padding-bottom: 1pt; text-align: left"> </td>
<td style="text-align: right"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; padding-bottom: 1pt">Earnings per common share, basic and diluted</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">1.36</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">1.38</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">1.68</td><td style="padding-bottom: 1pt; text-align: left"> </td>
<td style="border-bottom: Black 1pt solid; text-align: right"></td></tr>
</table>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td> </td><td style="font: bold 8pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td colspan="3" style="font: bold 8pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">2013</td><td style="font: bold 8pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td colspan="3" style="font: bold 8pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">2014</td><td style="font: bold 8pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td colspan="3" style="font: bold 8pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">2015</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 46%; font: 8pt Times New Roman, Times, Serif; text-align: justify; padding-left: 5.4pt">Interest expense</td><td style="width: 5%; font: 8pt Times New Roman, Times, Serif"> </td>
<td style="width: 1%; font: 8pt Times New Roman, Times, Serif; text-align: left"> </td><td style="width: 11%; font: 8pt Times New Roman, Times, Serif; text-align: right">33,018</td><td style="width: 1%; font: 8pt Times New Roman, Times, Serif; text-align: left"> </td><td style="width: 5%; font: 8pt Times New Roman, Times, Serif"> </td>
<td style="width: 1%; font: 8pt Times New Roman, Times, Serif; text-align: left"> </td><td style="width: 11%; font: 8pt Times New Roman, Times, Serif; text-align: right">46,345</td><td style="width: 1%; font: 8pt Times New Roman, Times, Serif; text-align: left"> </td><td style="width: 5%; font: 8pt Times New Roman, Times, Serif"> </td>
<td style="width: 1%; font: 8pt Times New Roman, Times, Serif; text-align: left"> </td><td style="width: 11%; font: 8pt Times New Roman, Times, Serif; text-align: right">45,070</td><td style="width: 1%; font: 8pt Times New Roman, Times, Serif; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font: 8pt Times New Roman, Times, Serif; text-align: justify; padding-left: 5.4pt">Interest capitalized</td><td style="font: 8pt Times New Roman, Times, Serif"> </td>
<td style="font: 8pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 8pt Times New Roman, Times, Serif; text-align: right">(11,098</td><td style="font: 8pt Times New Roman, Times, Serif; text-align: left">)</td><td style="font: 8pt Times New Roman, Times, Serif"> </td>
<td style="font: 8pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 8pt Times New Roman, Times, Serif; text-align: right">(1,795</td><td style="font: 8pt Times New Roman, Times, Serif; text-align: left">)</td><td style="font: 8pt Times New Roman, Times, Serif"> </td>
<td style="font: 8pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 8pt Times New Roman, Times, Serif; text-align: right">—  </td><td style="font: 8pt Times New Roman, Times, Serif; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font: 8pt Times New Roman, Times, Serif; text-align: justify; padding-left: 5.4pt">Swap effect</td><td style="font: 8pt Times New Roman, Times, Serif"> </td>
<td style="font: 8pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 8pt Times New Roman, Times, Serif; text-align: right">48,453</td><td style="font: 8pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 8pt Times New Roman, Times, Serif"> </td>
<td style="font: 8pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 8pt Times New Roman, Times, Serif; text-align: right">46,103</td><td style="font: 8pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 8pt Times New Roman, Times, Serif"> </td>
<td style="font: 8pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 8pt Times New Roman, Times, Serif; text-align: right">44,445</td><td style="font: 8pt Times New Roman, Times, Serif; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font: 8pt Times New Roman, Times, Serif; text-align: justify; padding-left: 5.4pt">Amortization and write-off of financing costs</td><td style="font: 8pt Times New Roman, Times, Serif"> </td>
<td style="font: 8pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 8pt Times New Roman, Times, Serif; text-align: right">1,569</td><td style="font: 8pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 8pt Times New Roman, Times, Serif"> </td>
<td style="font: 8pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 8pt Times New Roman, Times, Serif; text-align: right">4,107</td><td style="font: 8pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 8pt Times New Roman, Times, Serif"> </td>
<td style="font: 8pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 8pt Times New Roman, Times, Serif; text-align: right">1,896</td><td style="font: 8pt Times New Roman, Times, Serif; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font: 8pt Times New Roman, Times, Serif; text-align: justify; padding-left: 5.4pt">Commitment fees</td><td style="font: 8pt Times New Roman, Times, Serif"> </td>
<td style="font: 8pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 8pt Times New Roman, Times, Serif; text-align: right">2,283</td><td style="font: 8pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 8pt Times New Roman, Times, Serif"> </td>
<td style="font: 8pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 8pt Times New Roman, Times, Serif; text-align: right">506</td><td style="font: 8pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 8pt Times New Roman, Times, Serif"> </td>
<td style="font: 8pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 8pt Times New Roman, Times, Serif; text-align: right">600</td><td style="font: 8pt Times New Roman, Times, Serif; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font: 8pt Times New Roman, Times, Serif; text-align: justify; padding-bottom: 1pt; padding-left: 5.4pt">Bank charges and other</td><td style="font: 8pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font: 8pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 8pt Times New Roman, Times, Serif; text-align: right">308</td><td style="padding-bottom: 1pt; font: 8pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 8pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font: 8pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 8pt Times New Roman, Times, Serif; text-align: right">296</td><td style="padding-bottom: 1pt; font: 8pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 8pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font: 8pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 8pt Times New Roman, Times, Serif; text-align: right">265</td><td style="padding-bottom: 1pt; font: 8pt Times New Roman, Times, Serif; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 2.5pt; padding-left: 5.4pt"> </td><td style="font: bold 8pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font: bold 8pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; font: bold 8pt Times New Roman, Times, Serif; text-align: right">74,533</td><td style="padding-bottom: 2.5pt; font: bold 8pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: bold 8pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font: bold 8pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; font: bold 8pt Times New Roman, Times, Serif; text-align: right">95,562</td><td style="padding-bottom: 2.5pt; font: bold 8pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: bold 8pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font: bold 8pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; font: bold 8pt Times New Roman, Times, Serif; text-align: right">92,276</td><td style="padding-bottom: 2.5pt; font: bold 8pt Times New Roman, Times, Serif; text-align: left"> </td></tr>
</table>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 8pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td style="text-align: justify"> </td><td> </td>
<td colspan="27"><p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: -11pt"> </p><p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>The Effect of Derivative Instruments for the years ended December 31, 2013, 2014 and 2015</b></p></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: justify"> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="23" style="text-align: justify"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="27" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Derivatives in ASC 815 Cash Flow Hedging Relationships</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"> </td><td> </td>
<td colspan="3" style="text-align: justify"> </td><td> </td>
<td colspan="23" style="text-align: justify"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="11" style="text-align: center; border-bottom: Black 1pt solid"><p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Amount of Gain / (Loss) Recognized in Accumulated OCI on</b></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Derivative</b></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>(Effective Portion)</b></p></td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Location of Gain / (Loss) Recognized in Income on Derivative (Ineffective Portion)</td><td style="padding-bottom: 1pt"> </td>
<td colspan="13" style="text-align: center; border-bottom: Black 1pt solid"><p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Amount of Gain / (Loss)</b></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Recognized in Income on</b></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Derivative</b></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>(Ineffective Portion)</b></p></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify; padding-bottom: 1pt"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2013</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2014</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2015</td><td style="padding-bottom: 1pt"> </td>
<td style="text-align: justify; padding-bottom: 1pt"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2013</td><td style="padding-bottom: 1pt"> </td>
<td style="text-align: center; padding-bottom: 1pt"> </td>
<td style="text-align: center; border-bottom: Black 1pt solid"><b>2014</b></td>
<td style="text-align: center; padding-bottom: 1pt"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2015</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="font-weight: bold; text-align: center; padding-bottom: 1pt"></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 11%; text-align: justify; text-indent: 3.15pt">Interest rate swaps</td><td style="width: 2%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">27,964</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">(12,988</td><td style="width: 1%; text-align: left">)</td><td style="width: 2%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">(20,418</td><td style="width: 1%; text-align: left">)</td><td style="width: 2%"> </td>
<td style="width: 11%; text-align: left">Gain on derivative instruments, net</td><td style="width: 2%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">254</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 8%; text-align: right">645 </td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 8%; text-align: right">(60</td><td style="width: 1%; text-align: left">) </td><td style="width: 2%"> </td>
<td style="text-align: right"></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; padding-bottom: 1pt; text-indent: 3.15pt">Reclassification to Interest and finance costs</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">42,922</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">35,790</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">31,800</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="text-align: justify; padding-bottom: 1pt"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"><font style="font-size: 8pt"><b> -</b></font></td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">-</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">  -</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="font-weight: bold; text-align: right"></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; padding-bottom: 2.5pt; text-indent: 3.15pt"><b>Total</b></td><td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right"><b>70,886</b></td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right"><b>22,802</b></td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right"><b>11,382</b></td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="text-align: justify; padding-bottom: 2.5pt"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">254</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right"><b>645</b></td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">(60</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">)</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td>
<td style="font-weight: bold; text-align: right; padding-bottom: 2.5pt"> </td></tr>
</table>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 8pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td colspan="15" style="text-align: center; border-bottom: Black 1pt solid"><p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Derivatives Not Designated as Hedging Instruments</b></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>and ineffectiveness of Hedging Instruments under ASC 815</b></p></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"> </td><td style="padding-bottom: 1pt"> </td>
<td style="text-align: center; border-bottom: Black 1pt solid"><p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Location of Gain / (Loss)</b></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Recognized in Income on Derivative</b></p></td><td style="padding-bottom: 1pt"> </td>
<td colspan="11" style="text-align: center; border-bottom: Black 1pt solid"><p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Amount of Gain / (Loss)</b></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Recognized in Income</b></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>on Derivative</b></p></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"> </td><td style="padding-bottom: 1pt"> </td>
<td style="text-align: justify"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2013</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2014</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2015</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 18%; text-align: left">Non hedging interest rate swaps</td><td style="width: 3%"> </td>
<td style="width: 18%; text-align: center">Gain on derivative instruments, net</td><td style="width: 3%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 16%; text-align: right">6,459</td><td style="width: 1%; text-align: left"> </td><td style="width: 3%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 15%; text-align: right">5,833</td><td style="width: 1%; text-align: left"> </td><td style="width: 3%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 15%; text-align: right">15,555</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left">Ineffective portion of hedging interest rate swaps</td><td> </td>
<td style="text-align: center">Gain on derivative instruments, net</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">254</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">645</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(60</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1pt">Forward contracts</td><td style="padding-bottom: 1pt"> </td>
<td style="text-align: center; padding-bottom: 1pt">Gain on derivative instruments, net</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(165</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(1,009</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">1,361</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-weight: bold; padding-bottom: 2.5pt">Total</td><td style="padding-bottom: 2.5pt"> </td>
<td style="text-align: justify; padding-bottom: 2.5pt"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">6,548</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">5,469</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">16,856</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td> </td><td> </td>
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
</table>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 8pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">December 31, 2014</td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">Quoted Prices in Active Markets for Identical Assets (Level 1)</td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">Significant Other Observable Inputs (Level 2)</td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">Unobservable Inputs (Level 3)</td><td style="font-weight: bold; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-weight: bold; text-align: justify">Recurring measurements:</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 40%; text-align: justify">Forward contracts-liability position</td><td style="width: 3%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 10%; text-align: right">(1,009</td><td style="width: 1%; text-align: left">)</td><td style="width: 3%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 10%; text-align: right">—  </td><td style="width: 1%; text-align: left"> </td><td style="width: 3%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 10%; text-align: right">(1,009</td><td style="width: 1%; text-align: left">)</td><td style="width: 3%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 10%; text-align: right">—  </td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; padding-bottom: 1pt">Interest rate swaps-liability position</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(73,931</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">—  </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(73,931</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">—  </td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-weight: bold; text-align: justify; padding-bottom: 2.5pt">Total</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">(74,940</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">)</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">—  </td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">(74,940</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">)</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">—  </td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td></tr>
</table>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 8pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="font-size: 8pt; font-weight: bold"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="font-size: 8pt; font-weight: bold; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="font-size: 8pt; font-weight: bold; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"><b>December
31, 2015</b></font></td><td style="font-size: 8pt; font-weight: bold; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="font-size: 8pt; font-weight: bold"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="font-size: 8pt; font-weight: bold; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="font-size: 8pt; font-weight: bold; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"><b>Quoted
Prices in Active Markets for Identical Assets (Level 1)</b></font></td><td style="font-size: 8pt; font-weight: bold; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="font-size: 8pt; font-weight: bold"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="font-size: 8pt; font-weight: bold; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="font-size: 8pt; font-weight: bold; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"><b>Significant
Other Observable Inputs (Level 2)</b></font></td><td style="font-size: 8pt; font-weight: bold; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="font-size: 8pt; font-weight: bold"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="font-size: 8pt; font-weight: bold; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="font-size: 8pt; font-weight: bold; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"><b>Unobservable
Inputs (Level 3)</b></font></td><td style="font-size: 8pt; font-weight: bold; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-weight: bold; text-align: justify"><font style="font: 8pt Times New Roman, Times, Serif"><b>Recurring measurements:</b></font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 40%; text-align: justify"><font style="font: 8pt Times New Roman, Times, Serif">Forward contracts-asset
position</font></td><td style="width: 3%"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="width: 10%; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">352</font></td><td style="width: 1%; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="width: 3%"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="width: 10%; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">—  </font></td><td style="width: 1%; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="width: 3%"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="width: 10%; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">352</font></td><td style="width: 1%; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="width: 3%"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="width: 10%; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">—  </font></td><td style="width: 1%; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; padding-bottom: 1pt"><font style="font: 8pt Times New Roman, Times, Serif">Interest rate swaps-liability
position</font></td><td style="padding-bottom: 1pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">(52,117</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif">)</font></td><td style="padding-bottom: 1pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">—  </font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="padding-bottom: 1pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">(52,117</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif">)</font></td><td style="padding-bottom: 1pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">—  </font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-weight: bold; text-align: justify; padding-bottom: 2.5pt"><font style="font: 8pt Times New Roman, Times, Serif">Total</font></td><td style="font-weight: bold; padding-bottom: 2.5pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">(51,765</font></td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif">)</font></td><td style="font-weight: bold; padding-bottom: 2.5pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">—  </font></td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="font-weight: bold; padding-bottom: 2.5pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">(51,765</font></td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif">)</font></td><td style="font-weight: bold; padding-bottom: 2.5pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">—  </font></td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td></tr>
</table>
55
54
92
.88
.84
.87
.18
.18
.13
.13
.14
.16
.26
.26
.31
.31
.29
.24
0
0
0
0
0
718000
392000
18877000
1010000
16580000
18469000
184000
19411000
18642000
15570000
219000
3673000
3139000
3629000
3673000
3629000
3139000
6012000
4447000
3728000
576000
0
0
606000
593000
1678000
3278000
371000
0
371000
1856000
1572000
1070000
2758000
0
28984000
0
51853000
0
2758000
28984000
51853000
-2967000
3189000
-18037000
18506000
-16413000
37930000
-6156000
-36543000
-54343000
689112000
0
689112000
-29606000
53000
-29659000
24329000
23809000
5022000
1839665000
44
9461000
6399000
12205000
6189000
210000
9461000
10150000
0
2055000
9321000
9653000
9898000
8084000
1569000
7425000
7814000
1896000
2084000
-428000
-3496000
-428000
0
-1473000
-2023000
10
8
11
Elafonisos
n/a
Hull HN2125
Hull HN2124
Hull HN2123
Hull HN2122
Hull HN2121
Hull NCP0116
Hull NCP0115
Hull NCP0114
Hull NCP0113
Petalidi
Padma
Ensenada Express
Hull YZJ1206
Hull YZJ1207
Hull NCP0152
Monemvasia
Arkadia
.49
.40
.40
.40
.40
.40
.40
.25
.25
.49
.49
.49
.49
.49
.49
.49
.49
.49
.49
177220000
290805000
13267000
11969000
190487000
302774000
-1669000
-6360000
495993000
585883000
68170000
87820000
126878000
137793000
193545000
208826000
111417000
120330000
0
0
60463000
73414000
42500000
47500000
45000000
50000000
66000000
78000000
30625000
38875000
82500000
91500000
1323091000
1519941000
827098000
934058000
66850000
251281000
70396000
564046000
185259000
185259000
40811000
45793000
233624000
330430000
176769000
30783000
30699000
30698000
30698000
30783000
-5684000
-8919000
-11336000
-9430000
-35369000
-32571000
36395000
34287000
8469000
8096000
44864000
42383000
1450226000
217011000
93841000
122306000
198759000
371984000
446325000
265000
308000
296000
600000
2283000
506000
1896000
1569000
4107000
44445000
48453000
46103000
0
-11098000
-1795000
1795000
11098000
45070000
33018000
46345000
.50
.04
.50
0
52117000
0
52117000
0
73931000
0
73931000
0
1009000
0
1009000
0
51765000
0
51765000
0
74940000
0
74940000
11485000
67688000
29020000
11485000
29020000
67688000
96806000
-20418000
-60000
645000
254000
27964000
-12988000
-20418000
-12988000
27964000
Gain on derivative instruments, net
Gain on derivative instruments, net
31800000
0
0
0
42922000
35790000
31800000
35790000
42922000
15555000
5833000
6459000
-60000
645000
254000
1361000
-165000
-1009000
1361000
-1009000
-165000
Gain on derivative instruments, net
Gain on derivative instruments, net
904627000
1030642000
39654000
55422000
-60000
254000
645000
207439000
217533000
12463000
18509000
16
9
0
20000000
22500000
0
1.0725
1.273
0
<p style="font: 8pt Times New Roman, Times, Serif; margin: 5.95pt 0 0; text-align: justify"><b><i>(c) Comprehensive Income / (Loss):</i></b>
In the statement of comprehensive income, the Company presents the change in equity (net assets) during a period from transactions
and other events and circumstances from non-owner sources. It includes all changes in equity during a period except those resulting
from investments by shareholders and distributions to shareholders. The Company follows the provisions of ASC 220 “Comprehensive
Income”, and presents items of net income, items of other comprehensive income (“OCI”) and total comprehensive
income in two separate but consecutive statements. Reclassification adjustments between OCI and net income are required to be presented
separately on the statement of comprehensive income.</p>
.531250
0.476563
.29
0.546875
.29
0.476563
0.531250
0.546875
2125000
953000
2188000
953000
2125000
2188000
2016-01-14
2016-01-14
2016-01-21
2016-01-14
2016-04-19
2016-04-14
2016-04-14
2016-04-14
<p style="margin: 0"><font style="font: 8pt Times New Roman, Times, Serif">On January 27, 2016, Kelsen Shipping Co. and Montes
Shipping Co. entered into a supplemental agreement with the bank in order to reschedule the repayment of the outstanding loan
amount of $66,000 (Note 10.2.3) by extending the repayment, in 10 consecutive semi-annual variable installments from June 2016
until December 2020 and a balloon payment of $12,000 payable together with the last installment.</font></p>
2744000
0
352000
0
352000
0
0
0
0
2016-01-15
2016-01-15
2016-02-04
2016-02-11
2016-01-15
2016-05-04
2016-04-15
2016-04-15
2016-04-15
2016-02-18
12645000
10313000
5531000
up to 99 months
365 days
earliest redelivery dates possible
5
5
2
2024
17313000
14793000
The newbuild vessels <i>MSC Azov</i>, <i>MSC
Ajaccio</i> and <i>MSC Amalfi </i>were delivered to the Company on January 14,
2014, March 14, 2014 and April 28, 2014, respectively (Note 6). At the same
time, the Company agreed with a financial institution to refinance the then
outstanding balance of the loans relating to<i> MSC Azov</i>, <i>MSC Ajaccio</i>
and <i>MSC Amalfi</i>, by entering into a ten-year sale and leaseback
transaction for each vessel upon their respective deliveries
In December 2014, these five companies novated their
ship-building contracts to a financial institution and agreed to lease back the
vessels upon their delivery from the shipyard for a period of 12 years.
. In December 2015, these two companies novated
their ship-building contracts to a financial institution and agreed to lease
back the vessels upon their delivery from the shipyard for a period of seven
years.
85572000
256716000
7581000
6169000
Costamare Ventures Inc.
Sparrow Holdings LP (York)
between 25% and 49%
6
up to $250 million
$75 million
up to $240 million
1452000
6777000
8229000
676000
3567000
7802000
798000
2888000
108330000
.51
27740000
51853000
689112000
95080000
95080000
95080000
9403
9403
9403
March 14, 2014
April 28, 2014
January 14, 2014
$0.300 per light weight ton
approximately $0.250 per light weight ton
30 years
.0276
16-30 days
.992
0.085
0.07625
.0875
0.085
0.07625
.0875
0.0001
0.0001
0.0001
0.0001
0.0001
.0001
0.0001
0.0001
0.0001
0.0001
0.0001
25
25
14
14.1
25
25
25
14
14.1
12
25
Republic of Marshall Islands
2008-04-21
53
1000000000
2000000
2.125
1.90625
0.88
2.1875
4000000
2000000
4000000
At any time after January 21, 2019, the Series C Preferred Stock may be redeemed, at Company's election at a price of $25 of liquidation preference per share.
At any time after August 6, 2018, the Series B Preferred Stock may be redeemed, at Company's election at a price of $25 of liquidation preference per share.
At any time after May 13, 2020, the Series D Preferred Stock may be redeemed, at Company's election at a price of $25 of liquidation preference per share.
74800000
67800000
60300000
25000000
149600
100000000
145543000
96523000
100584000
48042000
93547000
96616000
10000000
0.0001
0.0001
0.0001
.0001
6283000
5335000
0.7
0.3
.65
320407
317774
22118000
1090000
13200000
921000
34709000
2925000
16044000
8767000
30305000
6669000
4654000
3212000
21662000
637000
4410000
45793000
49817000
In order to align the scrap rate estimates with the current historical average scrap rate, effective from January 1, 2015,
the Company adjusted the estimated scrap rate used to calculate the vessels' salvage value from $0.250 to $0.300 per lightweight
ton. The impact of the increase in the estimated scrap rate is a decrease in depreciation expense prospectively. The effect
of this change in accounting estimate, which did not require retrospective adoption as per ASC 250 "Accounting Changes and
Error Corrections," was to decrease depreciation expense by $5,388 and increase net income by $5,388 or $0.07 per common share,
basic and diluted , for the year ended December 31, 2015.
2015-05-18
between 25% and 75%
2024-05-18
19
-553000
-553000
0
0.531250
0.531250
0.476563
0.531250
.29
.29
.29
0.28
0.28
0.28
.28
0.531250
.531250
0.476563
.27
.476563
0.476563
0.476563
0.476563
0.476563
0.476563
.495833
0.531250
.376736
.546875
13
11
<p style="margin: 0">The termination fee is equal to (a) the number of full years remaining prior to December 31, 2025, times (b)
the aggregate fees due and payable to Costamare Shipping or Costamare Services, as applicable, during the 12-month period ending
on the date of termination (without taking into account any reduction in fees under the Framework Agreement to reflect that certain
obligations have been delegated to a sub-manager or a sub-provider, as applicable); provided that the termination fee will always
be at least two times the aggregate fees over the 12-month period described above.</p>
12
3 months
0.0075
1000000
1000000
1050000
1425000
1425000
75000
75000
0.49
0.51
0.25
0.4
0.4
0.49
.49
.49
.49
.49
7470000
21000000
42000000
90000000
90000000
150000000
75000000
150000000
7470000
1000000000
38500000
631340000
semi-annual
quarterly
quarterly
quarterly
quarterly
quarterly
quarterly
quarterly
quarterly
semiannual
semiannual
semiannual
semiannual
semiannual
quarterly
4456700
1364300
1364300
1273400
1273400
2715000
525000
1050000
962500
2500000
2500000
6000000
4125000
4500000
22473000
62393300
38199600
38199600
40744800
40744800
35590000
4200000
8400000
7700000
30000000
30000000
42000000
10000000
60000000
271263000
0.03
0.75:1
18
18
0.8
2.50:1
30000000
500000000
9000000
11300000
152800000
120000000
229200000
140000000
120000000
203343000
0.7
133700000
9000000
48765000
48765000
48765000
11300000
113700000
75000000
75000000
68170000
64121000
62757000
66213000
111417000
0
13125000
25200000
42500000
45000000
66000000
30625000
82500000
0
22138000
6495000
6000000
2334000
4202000
3900000
18 months
12
19
18
20
18
11
17
16
5
6
4
5
5
15
January 2016 to January 2021
February 2016 to August 2020
March 2016 to June 2020
February 2016 to November 2020
January 2016 to April 2020
March 2016 to December 2018
February 2016 to February 2020
January 2016 to October 2019
February 2016 to August 2019
February 2016 to February 2018
February 2016 to August 2018
June 2016 to December 2017
February 2016 to February 2018
May 2016 to May 2018
<p class="MsoNormal" style="margin-top: 5.95pt; text-align: justify">The term loans discussed above bear interest at LIBOR
plus a spread and are secured by, inter alia, (a) first priority mortgages over
the financed vessels, (b) first priority assignments of all insurances and
earnings of the mortgaged vessels and (c) corporate guarantees of Costamare or
its subsidiaries, as the case may be. The loan agreements contain usual ship
finance covenants, including restrictions as to changes in management and
ownership of the vessels, additional indebtedness, mortgaging of vessels, as
well as minimum requirements regarding hull Value Maintenance Clauses (“VMC”)
in the range of 80% to 125% and restrictions in dividend payments if an event
of default has occurred and is continuing or would occur as a result of the
payment of such dividend. <b style="mso-bidi-font-weight: normal"><p></p></b></p>
1.11%-6.75%
1.03%-6.75%
1.25%-6.75%
.042
.042
.043
72384000
77655000
81471000
-1306000
-7845000
10
$2,500 (in thousands of US dollars) and 598,400 shares payable quarterly in arrears
956
919
478
460
787400
2015-03-03
2015-11-02
598400
November 2008
2010-11-04
2015-12-31
2013-01-07
April 2013
The 3% Series 1 notes due 2023 amortizing subject to available cash flow in accordance with a corporate mechanism.
The 5% Series 2 notes due 2023 non-amortizing (of the 5% interest, 3% is payable quarterlyin cash and 2% is accrued quarterly with deferred cash payment on maturity).
2013-05-15
2013-06-06
2013-12-18
2013-12-23
2013-12-23
2013-12-23
2013-10-16
2013-10-16
2013-06-25
2013-06-25
2013-06-06
2013-06-06
2013-06-26
2013-07-08
2013-07-01
2015-05-18
2015-05-18
2013-12-23
2015-09-22
2015-05-18
February 2006
June 2006
December 2007
January 2008
May 2008
April 2014
August 2012
March 2012
2013-04-08
2013-03-14
2014-01-14
2014-03-14
2014-04-28
September 2014
May 2014
2015-05-29
2014-05-21
November 2015
2010-07-14
2010-08-27