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<p style="font: 8pt Times New Roman, Times, Serif; margin: 3pt 0; text-align: justify">The accompanying unaudited interim 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: 3pt 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 “Konstantakopoulos 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. During 2015, the Company issued 448,800 shares to Costamare Shipping Company S.A. and 149,600 to
Costamare Shipping Services Ltd. (Note 3) in accordance with the Group Management Agreement until November 2, 2015, and the Services
Agreement from November 2, 2015, respectively. On March 31, 2016 and on June 30, 2016, the Company issued 299,200 shares, in aggregate,
to Costamare Shipping Services Ltd. (Note 3), increasing the issued share capital to 75,697,600 shares. At June 30, 2016, members
of the Konstantakopoulos Family owned, directly or indirectly, approximately 65.1% of the outstanding common shares, in the aggregate.
Furthermore, (i) on 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: 3pt 0; text-align: justify">As of June 30, 2016 and December 31, 2015,
the Company owned and/or operated a fleet of 54 container vessels with a total carrying capacity of approximately 317,774 twenty-foot
equivalent units (“TEU”) 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: 3pt 0; text-align: justify">At June 30, 2016, 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: 3pt 0; text-align: justify">Revenues for the six-month periods ended
June 30, 2015 and 2016, 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: 3pt 0; text-align: justify; text-indent: 0.5in"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
<tr>
<td> </td>
<td colspan="2" style="vertical-align: top; border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 8pt"><b>2015</b></font></td>
<td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 1.5pt"> </td>
<td style="vertical-align: bottom; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="vertical-align: top; border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 8pt"><b>2016</b></font></td>
<td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 1.5pt"> </td></tr>
<tr style="background-color: #CCEEFF">
<td nowrap="nowrap"><font style="font-size: 8pt"><b>A</b></font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">25</font></td>
<td nowrap="nowrap" style="vertical-align: bottom"><font style="font-size: 8pt">%</font></td>
<td style="vertical-align: bottom; text-align: right"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">27</font></td>
<td nowrap="nowrap" style="vertical-align: bottom"><font style="font-size: 8pt">%</font></td></tr>
<tr style="background-color: white">
<td nowrap="nowrap"><font style="font-size: 8pt"><b>B</b></font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">31</font></td>
<td nowrap="nowrap" style="vertical-align: bottom"><font style="font-size: 8pt">%</font></td>
<td style="vertical-align: bottom; text-align: right"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">30</font></td>
<td nowrap="nowrap" style="vertical-align: bottom"><font style="font-size: 8pt">%</font></td></tr>
<tr style="background-color: #CCEEFF">
<td nowrap="nowrap"><font style="font-size: 8pt"><b>C</b></font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">13</font></td>
<td nowrap="nowrap" style="vertical-align: bottom"><font style="font-size: 8pt">%</font></td>
<td style="vertical-align: bottom; text-align: right"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">13</font></td>
<td nowrap="nowrap" style="vertical-align: bottom"><font style="font-size: 8pt">%</font></td></tr>
<tr style="background-color: white">
<td nowrap="nowrap" style="padding-bottom: 1.5pt"><font style="font-size: 8pt"><b>D</b></font></td>
<td style="vertical-align: bottom; border-bottom: black 1.5pt solid"> </td>
<td style="vertical-align: bottom; border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 8pt">18</font></td>
<td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 1.5pt"><font style="font-size: 8pt">%</font></td>
<td style="vertical-align: bottom; padding-bottom: 1.5pt; text-align: right"> </td>
<td style="vertical-align: bottom; border-bottom: black 1.5pt solid"> </td>
<td style="vertical-align: bottom; border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 8pt">18</font></td>
<td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 1.5pt"><font style="font-size: 8pt">%</font></td></tr>
<tr style="background-color: #CCEEFF">
<td><font style="font-size: 8pt"><b>Total </b></font></td>
<td style="vertical-align: bottom; border-bottom: black 2.25pt double"> </td>
<td style="vertical-align: bottom; border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 8pt"><b>87</b></font></td>
<td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 3pt"><font style="font-size: 8pt"><b>%</b></font></td>
<td style="vertical-align: bottom; padding-bottom: 3pt; text-align: right"> </td>
<td style="vertical-align: bottom; border-bottom: black 2.25pt double"> </td>
<td style="vertical-align: bottom; border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 8pt"><b>88</b></font></td>
<td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 3pt"><font style="font-size: 8pt"><b>%</b></font></td></tr>
</table>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 3pt 0"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 3pt 0; text-align: justify">The accompanying unaudited interim consolidated
financial statements have been prepared in accordance with accounting principles generally accepted in the United States ("U.S.
GAAP") and applicable rules and regulations of the Securities and Exchange Commission ("SEC") for interim financial
information. Accordingly, they do not include all the information and notes required by U.S. GAAP for annual financial statements.
These statements and the accompanying notes should be read in conjunction with the Company's Annual Report on Form 20-F for the
fiscal year ended December 31, 2015, filed with the SEC on April 27, 2016.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 3pt 0; text-align: justify">These unaudited interim consolidated financial
statements have been prepared on the same basis as the Company's annual consolidated financial statements and, in the opinion of
management, reflect all adjustments, consisting of only normal recurring adjustments, considered necessary for a fair presentation
of the Company's financial position, results of operations and cash flows for the periods presented. Operating results for the
six-month period ended June 30, 2016, are not necessarily indicative of the results that might be expected for the fiscal year
ending December 31, 2016.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 3pt 0; text-align: justify">A discussion of the Company’s significant
accounting policies can be found in the Company’s Consolidated Financial Statements included in the Annual Report on Form
20-F for the year ended December 31, 2015. There have been no material changes to these policies in the six-month period ended
June 30, 2016, except for as discussed below.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 3pt 0; text-align: justify"><b><i>(a) 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. Previous guidance
generally required 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. Upon adoption, an entity must apply
the new guidance retrospectively to all prior periods presented in the financial statements.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 3pt 0; text-align: justify">On January 1, 2016, the Company adopted
ASU No. 2015-03 <i>Interest – Imputation of Interest</i> effective for the financial statements for the fiscal year ending
December 31, 2016 and interim periods within this fiscal year and thus presents deferred financing costs, net of accumulated amortization,
as a reduction of long-term debt and capital lease obligation. In order to conform with the current period presentation, the Company
has reduced Deferred charges, net by $6,006 and has decreased the amount of the related current and non-current obligations by
$1,658 and $4,348, respectively on the consolidated balance sheet as of December 31, 2015 (see Notes 10 and 11). This reclassification
has no impact on the Company's results of operations, cash flows and net assets for any period.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 3pt 0; text-align: justify"><b><i>(b) </i></b>On January 1, 2016 the
Company changed the presentation of interest accrued and realized on non-hedging derivative instruments and reclassified such from
the Interest and Finance costs  line item to Gain / (Loss) on derivative instruments, net on the consolidated statements of
income. Comparative figures have been recast to reflect this change in presentation.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 3pt 0; text-align: justify"><b><i>(c) </i></b>On January 1, 2016, the
Company adopted<b><i> </i></b>ASU No. 2015-02 <i>Consolidation (Topic 810), Amendments to the Consolidation Analysis</i> effective
for the fiscal year ending December 31, 2016 and interim periods within this fiscal year. The adoption of this guidance had no
impact on the Company's results of operations, cash flows and net assets for any period.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 3pt 0; text-align: justify"><b>New accounting pronouncements</b><br />
<br />
In January 2016, the FASB issued ASU No. 2016-01—<i>Financial Instruments – Overall (Subtopic 825-10) </i>which includes
the requirement for all equity investments to be measured at fair value with changes in the fair value recognized through net
income (other than those accounted for under equity method of accounting or those that result in consolidation of the investee).
This update is effective for all entities for fiscal years beginning after December 15, 2017 and interim periods within those
fiscal years. Early adoption is not 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: 3pt 0; text-align: justify">In March 2016, the FASB issued ASU No. 2016-07—<i>Investments—Equity
Method and Joint Ventures (Topic 323)</i> to simplify the accounting for equity method investments which eliminates the requirement
in Topic 323 that an entity retroactively adopt the equity method of accounting if an investment qualifies for use of the equity
method as a result of an increase in the level of ownership or degree of influence. The amendments require that the equity method
investor add the cost of acquiring the additional interest in the investee to the current basis of the investor’s previously
held interest and adopt the equity method of accounting as of the date the investment becomes qualified for equity method accounting.
This update is effective for all entities for fiscal years beginning after December 15, 2016 and interim periods within those fiscal
years. 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 early adoption.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 3pt 0; text-align: justify">In March 2016, the FASB issued ASU 2016-08,
<i>Revenue from Contracts with Customers: Principal versus Agent Considerations (Reporting Revenue Gross versus Net)</i>, which
clarifies the guidance in ASU 2014-09 and has the same effective date as the original standard. 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), 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: 3pt 0; text-align: justify">In March 2016, the FASB issued ASU 2016-09,
<i>Compensation — Stock Compensation: Improvements to Employee Share-Based Payment Accounting </i>which is intended to simplify
several areas of accounting for share-based compensation arrangements, including the income tax impact, classification on the
statement of cash flows and forfeitures. This standard is effective for public entities with annual periods beginning after December
15, 2016, and interim periods within those annual periods. Early adoption is permitted in any interim or annual period. 
The Company believes that the implementation of this update will not have any material impact on its financial statements and
has not elected early adoption. </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 3pt 0; text-align: justify">In June 2016, the FASB issued ASU 2016-13–
<i>Financial Instruments – Credit Losses</i> (Topic 326): <i>Measurement of Credit Losses on Financial Instruments</i>. ASU
2016-13 amends guidance on reporting credit losses for assets held at amortized cost basis and available for sale debt securities.
 For public entities, the amendments of this Update are effective for fiscal years beginning after December 15, 2019, including
interim periods within those fiscal years.  Early application is permitted. Management is in the process of assessing the
impact of the amendment of this Update on the Company's consolidated financial position and performance.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 3pt 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 Chairman and 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 services.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 3pt 0; text-align: justify">Costamare Shipping, itself or through Shanghai
Costamare Ship Management Co., Ltd. (“Shanghai Costamare”), which is also controlled by Mr. Konstantinos 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 respect of our containerships in exchange for a daily
fee for each containership.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 3pt 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: 3pt 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: 3pt 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 and for each containership subject to a bareboat charter a daily fee of $0.478 since January 1, 2015, 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: 3pt 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: 3pt 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: 3pt 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. As at June 30, 2016, 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: 3pt 0; text-align: justify">Management fees charged by Costamare Shipping
in the six-month periods ended June 30, 2015 and 2016, amounted to $9,582 and $9,570, 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) $1,798 for the six-month period ended June 30, 2016 ($1,829 for the six-month period ended
June 30 , 2015), 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 six-month period ended June 30, 2016, (ii) $1,250, which is
included in General and administrative expenses – related parties in the accompanying consolidated statement of income for
the six-month period ended June 30, 2016 ($1,250 for the six-month period ended June 30, 2015) and (iii) $2,746 representing the
fair value of 299,200 shares, which is included in General and administrative expenses - related parties in the accompanying consolidated
statement of income for the six-month period ended June 30, 2016 ($5,383 for the six-month period ended June 30, 2015). 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 2015 and 2016
consolidated balance sheets.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 3pt 0; text-align: justify">During the six-month periods ended June
30, 2016 and 2015, the Manager charged in aggregate to the companies established pursuant to the Framework Deed (Notes 8 and 9)
the amount of $1,242 and $837, respectively for services provided in accordance with the respective management agreements.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 3pt 0; text-align: justify">The balance due from the Manager at December
31, 2015 and June 30, 2016, amounted to $3,728 and $3,141, 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 and June 30, 2016, amounted to $371 and
$232, respectively, and is reflected as Due to related parties in the accompanying consolidated balance sheets.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 3pt 0; text-align: justify"><b><i>(b) Ciel Shipmanagement S.A. (“CIEL”):</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> wreck. Management fees charged
by CIEL in the six-month periods ended June 30, 2015 and 2016, amounted to $107 and $nil, respectively and are included in Management
fees-related parties in the accompanying consolidated statements of income. The balance due from CIEL at both December 31, 2015
and June 30, 2016 amounted to $606 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: 3pt 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. 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 June 30, 2016, Shanghai Costamare provided such services
to fourteen (13 as of December 31, 2015) of the Company’s containerships. There was no balance due from/to Shanghai Costamare
at both December 31, 2015 and June 30, 2016.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 3pt 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 in 2014. </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 3pt 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 six-month period ended June 30, 2016, the Company recorded $321 in relation to their fair value unwinding
($484 for the six-month period ended June 30, 2015), which is included in “Interest income” in the consolidated statement
of income for the six-month period ended June 30, 2016. 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 June 30, 2016, 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 June 30, 2016, 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. During the six-month period ended June 30, 2016, the Company received $46 capital redemption, of the Series
1 Notes, reducing the principal to $1,406. As of June 30, 2016, 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: 3pt 0; text-align: justify">Inventories of $10,578 and $10,774 in the
accompanying balance sheets at December 31, 2015 and June 30, 2016, respectively relate to bunkers, lubricants and spare parts.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 3pt 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: 3pt 0; text-align: justify; text-indent: 0.5in"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
<tr>
<td style="vertical-align: bottom; padding-bottom: 1.5pt; text-align: justify"> </td>
<td style="vertical-align: bottom; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="vertical-align: bottom; border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 8pt"><b>Vessel Cost</b></font></td>
<td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 1.5pt"> </td>
<td style="vertical-align: bottom; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid">
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Accumulated</b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Depreciation</b></p></td>
<td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 1.5pt"> </td>
<td style="vertical-align: bottom; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid">
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Net Book</b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Value</b></p></td>
<td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 67%; padding-bottom: 1.5pt; text-align: justify"><font style="font-size: 8pt"><b>Balance, December 31, 2015</b></font></td>
<td style="width: 1%; padding-bottom: 1.5pt"> </td>
<td style="width: 1%; border-bottom: black 1.5pt solid"> </td>
<td style="width: 8%; border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 8pt"><b>2,950,042</b></font></td>
<td nowrap="nowrap" style="width: 1%; padding-bottom: 1.5pt"> </td>
<td style="width: 1%; padding-bottom: 1.5pt"> </td>
<td style="width: 1%; border-bottom: black 1.5pt solid"> </td>
<td style="width: 8%; border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 8pt"><b>(945,392</b></font></td>
<td nowrap="nowrap" style="width: 1%; padding-bottom: 1.5pt"><font style="font-size: 8pt"><b>)</b></font></td>
<td style="width: 1%; padding-bottom: 1.5pt"> </td>
<td style="width: 1%; border-bottom: black 1.5pt solid"> </td>
<td style="width: 8%; border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 8pt"><b>2,004,650</b></font></td>
<td nowrap="nowrap" style="width: 1%; padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="text-align: justify"><font style="font-size: 8pt">Depreciation</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt"><b>-</b></font></td>
<td nowrap="nowrap"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">(46,748</font></td>
<td nowrap="nowrap"><font style="font-size: 8pt">)</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">(46,748</font></td>
<td nowrap="nowrap"><font style="font-size: 8pt">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 1.5pt; text-align: justify"><font style="font-size: 8pt">Other vessels’ costs</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 8pt">2,563</font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 8pt">-</font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 8pt">2,563</font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 3pt; text-align: justify"><font style="font-size: 8pt"><b>Balance, June 30, 2016</b></font></td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 8pt"><b>2,952,605</b></font></td>
<td nowrap="nowrap" style="padding-bottom: 3pt"> </td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 8pt"><b>(992,140</b></font></td>
<td nowrap="nowrap" style="padding-bottom: 3pt"><font style="font-size: 8pt"><b>)</b></font></td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 8pt"><b>1,960,465</b></font></td>
<td nowrap="nowrap" style="padding-bottom: 3pt"> </td></tr>
</table>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 3pt 0"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 3pt 0; text-align: justify">Forty-five of the Company’s vessels,
with a total carrying value of $1,898,384 as of June 30, 2016, 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: 3pt 0; text-align: justify">Deferred charges, net include the unamortized
dry-docking and special survey costs. The amounts in the accompanying consolidated balance sheets are analyzed as follows:</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 3pt 0"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid">
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Dry-docking</b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>and Special</b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Survey Costs</b></p></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 89%; padding-bottom: 1.5pt; text-align: justify"><font style="font-size: 8pt"><b>Balance, December 31, 2015</b></font></td>
<td style="width: 1%; padding-bottom: 1.5pt"> </td>
<td style="width: 1%; border-bottom: black 1.5pt solid"> </td>
<td style="width: 8%; border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 8pt"><b>22,809</b></font></td>
<td nowrap="nowrap" style="width: 1%; padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="text-align: justify"><font style="font-size: 8pt">Additions</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">5,868</font></td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 1.5pt; text-align: justify"><font style="font-size: 8pt">Amortization</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 8pt">(3,940</font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"><font style="font-size: 8pt">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 3pt; text-align: justify"><font style="font-size: 8pt"><b>Balance, June 30, 2016</b></font></td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 8pt"><b>24,737</b></font></td>
<td nowrap="nowrap" style="padding-bottom: 3pt"> </td></tr>
</table>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 3pt 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 3pt 0; text-align: justify">During the six-month period ended June 30,
2015 three vessels underwent and completed their special surveys. During the six-month period ended June 30, 2016 six vessels underwent
and completed 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: 3pt 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: 3pt 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  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: 3pt 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% in the equity of the entities formed under the Restated Framework Deed, 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: 3pt 0; text-align: justify">On termination and on the occurrence of
certain extraordinary events, 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 June 30, 2016, 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: 3pt 0; text-align: justify">The companies accounted for as equity method
investments, all of which are incorporated in the Marshall Islands, are as follows: </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 3pt 0"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
<tr>
<td> </td>
<td style="text-align: justify"> </td>
<td style="vertical-align: bottom"> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 8pt"><b>Participation %</b></font></td>
<td nowrap="nowrap" style="vertical-align: bottom"> </td>
<td style="text-align: center"><font style="font-size: 8pt"><b>Date Established</b></font></td></tr>
<tr>
<td style="vertical-align: bottom; border-bottom: black 1.5pt solid"><font style="font-size: 8pt"><b>Entity</b></font></td>
<td style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 8pt"><b>Vessel/Hull</b></font></td>
<td style="vertical-align: bottom; border-bottom: black 1.5pt solid"> </td>
<td colspan="2" style="vertical-align: bottom; border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 8pt"><b>June 30, 2016</b></font></td>
<td nowrap="nowrap" style="vertical-align: bottom; border-bottom: black 1.5pt solid"> </td>
<td style="vertical-align: bottom; border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 8pt"><b>/Acquired</b></font></td></tr>
<tr style="background-color: #CCEEFF">
<td style="width: 30%; text-align: justify"><font style="font-size: 8pt">Steadman Maritime Co.</font></td>
<td style="width: 29%; text-align: center"><font style="font-size: 8pt"><i>Ensenada Express</i></font></td>
<td style="vertical-align: bottom; width: 1%"> </td>
<td style="vertical-align: bottom; width: 1%"> </td>
<td style="vertical-align: bottom; width: 9%; text-align: right"><font style="font-size: 8pt">49</font></td>
<td nowrap="nowrap" style="vertical-align: bottom; width: 1%"><font style="font-size: 8pt">%</font></td>
<td style="width: 29%; text-align: center"><font style="font-size: 8pt">July 1, 2013</font></td></tr>
<tr style="background-color: white">
<td style="text-align: justify"><font style="font-size: 8pt">Marchant Maritime Co.</font></td>
<td style="text-align: center"><font style="font-size: 8pt"><i>Padma</i></font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">49</font></td>
<td nowrap="nowrap" style="vertical-align: bottom"><font style="font-size: 8pt">%</font></td>
<td style="text-align: center"><font style="font-size: 8pt">July 8, 2013</font></td></tr>
<tr style="background-color: #CCEEFF">
<td style="text-align: justify"><font style="font-size: 8pt">Horton Maritime Co.</font></td>
<td style="text-align: center"><font style="font-size: 8pt"><i>Petalidi</i></font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">49</font></td>
<td nowrap="nowrap" style="vertical-align: bottom"><font style="font-size: 8pt">%</font></td>
<td style="text-align: center"><font style="font-size: 8pt">June 26, 2013</font></td></tr>
<tr style="background-color: white">
<td style="text-align: justify"><font style="font-size: 8pt">Smales Maritime Co.</font></td>
<td style="text-align: center"><font style="font-size: 8pt"><i>Elafonisos</i></font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">49</font></td>
<td nowrap="nowrap" style="vertical-align: bottom"><font style="font-size: 8pt">%</font></td>
<td style="text-align: center"><font style="font-size: 8pt">June 6, 2013</font></td></tr>
<tr style="background-color: #CCEEFF">
<td style="text-align: justify"><font style="font-size: 8pt">Geyer Maritime Co.</font></td>
<td style="text-align: center"><font style="font-size: 8pt"><i>Arkadia</i></font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">49</font></td>
<td nowrap="nowrap" style="vertical-align: bottom"><font style="font-size: 8pt">%</font></td>
<td style="text-align: center"><font style="font-size: 8pt">May 18, 2015</font></td></tr>
<tr style="background-color: white">
<td style="text-align: justify"><font style="font-size: 8pt">Goodway Maritime Co.</font></td>
<td style="text-align: center"><font style="font-size: 8pt"><i>Monemvasia</i></font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">49</font></td>
<td nowrap="nowrap" style="vertical-align: bottom"><font style="font-size: 8pt">%</font></td>
<td style="text-align: center"><font style="font-size: 8pt">September 22, 2015</font></td></tr>
<tr style="background-color: #CCEEFF">
<td style="text-align: justify"><font style="font-size: 8pt">Kemp Maritime Co.</font></td>
<td style="text-align: center"><font style="font-size: 8pt">Hull NCP0113</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">49</font></td>
<td nowrap="nowrap" style="vertical-align: bottom"><font style="font-size: 8pt">%</font></td>
<td style="text-align: center"><font style="font-size: 8pt">June 6, 2013</font></td></tr>
<tr style="background-color: white">
<td style="text-align: justify"><font style="font-size: 8pt">Hyde Maritime Co.</font></td>
<td style="text-align: center"><font style="font-size: 8pt">Hull NCP0114</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">49</font></td>
<td nowrap="nowrap" style="vertical-align: bottom"><font style="font-size: 8pt">%</font></td>
<td style="text-align: center"><font style="font-size: 8pt">June 6, 2013</font></td></tr>
<tr style="background-color: #CCEEFF">
<td style="text-align: justify"><font style="font-size: 8pt">Skerrett Maritime Co.</font></td>
<td style="text-align: center"><font style="font-size: 8pt">Hull NCP0152</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">49</font></td>
<td nowrap="nowrap" style="vertical-align: bottom"><font style="font-size: 8pt">%</font></td>
<td style="text-align: center"><font style="font-size: 8pt">December 23, 2013</font></td></tr>
<tr style="background-color: white">
<td style="text-align: justify"><font style="font-size: 8pt">Ainsley Maritime Co.</font></td>
<td style="text-align: center"><font style="font-size: 8pt">Hull NCP0115</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">25</font></td>
<td nowrap="nowrap" style="vertical-align: bottom"><font style="font-size: 8pt">%</font></td>
<td style="text-align: center"><font style="font-size: 8pt">June 25, 2013</font></td></tr>
<tr style="background-color: #CCEEFF">
<td style="text-align: justify"><font style="font-size: 8pt">Ambrose Maritime Co.</font></td>
<td style="text-align: center"><font style="font-size: 8pt">Hull NCP0116</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">25</font></td>
<td nowrap="nowrap" style="vertical-align: bottom"><font style="font-size: 8pt">%</font></td>
<td style="text-align: center"><font style="font-size: 8pt">June 25, 2013</font></td></tr>
<tr style="background-color: white">
<td style="text-align: justify"><font style="font-size: 8pt">Benedict Maritime Co.</font></td>
<td style="text-align: center"><font style="font-size: 8pt"><i> Triton</i></font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">40</font></td>
<td nowrap="nowrap" style="vertical-align: bottom"><font style="font-size: 8pt">%</font></td>
<td style="text-align: center"><font style="font-size: 8pt">October 16, 2013</font></td></tr>
<tr style="background-color: #CCEEFF">
<td style="text-align: justify"><font style="font-size: 8pt">Bertrand Maritime Co.</font></td>
<td style="text-align: center"><font style="font-size: 8pt"><i>Titan</i></font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">40</font></td>
<td nowrap="nowrap" style="vertical-align: bottom"><font style="font-size: 8pt">%</font></td>
<td style="text-align: center"><font style="font-size: 8pt">October 16, 2013</font></td></tr>
<tr style="background-color: white">
<td style="text-align: justify"><font style="font-size: 8pt">Beardmore Maritime Co.</font></td>
<td style="text-align: center"><font style="font-size: 8pt">Hull HN2123</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">40</font></td>
<td nowrap="nowrap" style="vertical-align: bottom"><font style="font-size: 8pt">%</font></td>
<td style="text-align: center"><font style="font-size: 8pt">December 23, 2013</font></td></tr>
<tr style="background-color: #CCEEFF">
<td style="text-align: justify"><font style="font-size: 8pt">Schofield Maritime Co.</font></td>
<td style="text-align: center"><font style="font-size: 8pt">Hull HN2124</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">40</font></td>
<td nowrap="nowrap" style="vertical-align: bottom"><font style="font-size: 8pt">%</font></td>
<td style="text-align: center"><font style="font-size: 8pt">December 23, 2013</font></td></tr>
<tr style="background-color: white">
<td style="text-align: justify"><font style="font-size: 8pt">Fairbank Maritime Co.</font></td>
<td style="text-align: center"><font style="font-size: 8pt">Hull HN2125</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">40</font></td>
<td nowrap="nowrap" style="vertical-align: bottom"><font style="font-size: 8pt">%</font></td>
<td style="text-align: center"><font style="font-size: 8pt">December 23, 2013</font></td></tr>
<tr style="background-color: #CCEEFF">
<td style="text-align: justify"><font style="font-size: 8pt">Platt Maritime Co.</font></td>
<td style="text-align: center"><font style="font-size: 8pt">Hull YZJ1206</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">49</font></td>
<td nowrap="nowrap" style="vertical-align: bottom"><font style="font-size: 8pt">%</font></td>
<td style="text-align: center"><font style="font-size: 8pt">May 18, 2015</font></td></tr>
<tr style="background-color: white">
<td style="text-align: justify"><font style="font-size: 8pt">Sykes Maritime Co.</font></td>
<td style="text-align: center"><font style="font-size: 8pt">Hull YZJ1207</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">49</font></td>
<td nowrap="nowrap" style="vertical-align: bottom"><font style="font-size: 8pt">%</font></td>
<td style="text-align: center"><font style="font-size: 8pt">May 18, 2015</font></td></tr>
<tr style="background-color: #CCEEFF">
<td style="text-align: justify"><font style="font-size: 8pt">Connell Maritime Co.</font></td>
<td style="text-align: center"><font style="font-size: 8pt">n/a</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">40</font></td>
<td nowrap="nowrap" style="vertical-align: bottom"><font style="font-size: 8pt">%</font></td>
<td style="text-align: center"><font style="font-size: 8pt">December 18, 2013</font></td></tr>
</table>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 3pt 0; text-align: justify">During the year ended December 31, 2013,
in accordance with the Framework Deed, York contributed $16,044, in the aggregate, in order to acquire a 51% equity interest in
the ship-owning companies Steadman Maritime Co., Marchant Maritime Co. and Horton Maritime Co., and for initial working capital
of such ship-owning companies. 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.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 3pt 0; text-align: justify">During the same year, 2013, Costamare Ventures
participated with a 49% interest in the equity of Kemp Maritime Co. and Hyde Maritime Co. which entered into ship-building contracts
for the construction of two 11,000 TEU container vessels, by contributing in aggregate $921 during the year ended December 31,
2015 and $333 during the six-month period ended June 30, 2016. In June 2016, the two companies, as joint and several borrowers
signed a loan agreement with a bank for an amount up to  $88,000, in aggregate, to partly finance the construction cost of
the two newbuild vessels. The Company, Costamare Ventures and York through its affiliate Bluebird Holdings L.P. participate as
corporate guarantors (Note 13 (c)).</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 3pt 0; text-align: justify">During the year ended December 31, 2015,
Costamare Ventures participated with a 25% interest in the equity of Ainsley Maritime Co. and Ambrose Maritime Co., which entered
into ship-building contracts for the construction of two 11,000 TEU container vessels, by contributing $13,200 in the aggregate
and $144 during the six-month period ended June 30, 2016.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 3pt 0; text-align: justify">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., which 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 and the six-month period ended June 30, 2016, Costamare Ventures contributed in aggregate $1,090 and $10,204,
respectively, to such companies.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 3pt 0; text-align: justify">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 a 49% interest 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.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 3pt 0; text-align: justify">During the year ended December 31, 2015,
Costamare Ventures participated with a 49% interest in the equity of Geyer Maritime Co. by contributing the amount of $3,212 for
the acquisition of the secondhand vessel <i>Arkadia</i> and 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 and
the six-month period ended June 30, 2016, Costamare Ventures contributed to Skerrett Maritime Co., in aggregate, the amount of
$21,662 and $41, respectively. Costamare Ventures also participated with a 49% interest in the equity of Goodway Maritime Co.,
for the acquisition of the secondhand vessel <i>Monemvasia</i>, which was delivered in February 2016, by contributing in aggregate
the amount of $637 during the year ended December 31, 2015 and $2,925 during the six-month period ended June 30, 2016<i>.</i></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 3pt 0; text-align: justify">During the same year, 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 agreed to novate 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 in February 2016, the Company received the
amount of $2,744 in the form of special dividend.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 3pt 0; text-align: justify">For the six-month periods ended June 30,
2015 and 2016, the Company recorded net losses of $47 and $405, respectively, which are separately reflected as Equity loss on
investments in the accompanying consolidated statements of income. Costamare Ventures has provided Marchant Maritime Co., Horton
Maritime Co. and Steadman Maritime Co. with certain cash advances. As of December 31, 2015 and June 30, 2016, the aggregate balance
due from the three companies, amounted to $1,678 and nil, respectively and are included in Due from related parties in the accompanying
consolidated balance sheets. </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 3pt 0; text-align: justify">The summarized combined financial information
of the companies accounted for as equity method investment is as follows:</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 3pt 0; text-indent: 0.5in"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
<tr>
<td style="vertical-align: bottom; padding-bottom: 1.5pt"> </td>
<td style="vertical-align: bottom; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="vertical-align: bottom; border-bottom: black 1.5pt solid">
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>December 31, </b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>2015</b></p></td>
<td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 1.5pt"> </td>
<td style="vertical-align: bottom; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="vertical-align: top; border-bottom: black 1.5pt solid">
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>June 30, </b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>2016</b></p></td>
<td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 78%; text-align: justify"><font style="font-size: 8pt">Non-current assets</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 8%; text-align: right"><font style="font-size: 8pt">290,805</font></td>
<td nowrap="nowrap" style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 8%; text-align: right"><font style="font-size: 8pt">533,407</font></td>
<td nowrap="nowrap" style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1.5pt; text-align: justify"><font style="font-size: 8pt">Current assets</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 8pt">11,969</font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 8pt">16,189</font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 1.5pt; text-align: justify"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 8pt">302,774</font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 8pt">549,596</font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="text-align: justify"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td nowrap="nowrap"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 1.5pt; text-align: justify"><font style="font-size: 8pt">Current liabilities</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 8pt">5,335</font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 8pt">18,875</font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td nowrap="nowrap"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="6" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 8pt"><b>Six-month periods ended June 30,</b></font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td></tr>
<tr style="background-color: white">
<td style="vertical-align: bottom; padding-bottom: 1.5pt"> </td>
<td style="vertical-align: bottom; padding-bottom: 1.5pt"> </td>
<td style="vertical-align: bottom; border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 8pt"><b>2015</b></font></td>
<td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 1.5pt"> </td>
<td style="vertical-align: bottom; padding-bottom: 1.5pt"> </td>
<td style="vertical-align: bottom; border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 8pt"><b>2016</b></font></td>
<td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 1.5pt; text-align: justify"><font style="font-size: 8pt">Voyage revenue</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 8pt">7,252</font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 8pt">10,333</font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1.5pt; text-align: justify"><font style="font-size: 8pt"><b>Net loss</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 8pt"><b>(454</b></font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"><font style="font-size: 8pt"><b>)</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 8pt"><b>(966</b></font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"><font style="font-size: 8pt"><b>)</b></font></td></tr>
</table>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 3pt 0; text-indent: 0.5in"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 3pt 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: 3pt 0; text-align: justify; text-indent: 0.5in"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
<tr>
<td style="vertical-align: bottom; padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"><font style="font-size: 8pt"><b>Borrower(s)</b></font></td>
<td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 1.5pt"> </td>
<td style="vertical-align: bottom; padding-bottom: 1.5pt"> </td>
<td colspan="4" style="vertical-align: bottom; padding-bottom: 1.5pt"> </td>
<td style="vertical-align: bottom; padding-bottom: 1.5pt"> </td>
<td style="vertical-align: bottom; border-bottom: black 1.5pt solid"> </td>
<td style="vertical-align: bottom; border-bottom: black 1.5pt solid">
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>December 31, </b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>2015</b></p></td>
<td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 1.5pt"> </td>
<td style="vertical-align: bottom; padding-bottom: 1.5pt"> </td>
<td style="vertical-align: bottom; border-bottom: black 1.5pt solid"> </td>
<td style="vertical-align: bottom; border-bottom: black 1.5pt solid">
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>June 30, </b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>2016 </b></p></td>
<td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 1.5pt"> </td></tr>
<tr>
<td style="vertical-align: bottom; padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"><font style="font-size: 8pt">1.</font></td>
<td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 1.5pt"> </td>
<td style="vertical-align: bottom; padding-bottom: 1.5pt"> </td>
<td colspan="4" style="vertical-align: bottom; text-align: justify"><font style="font-size: 8pt"><b>Credit Facility</b></font></td>
<td style="vertical-align: bottom; padding-bottom: 1.5pt"> </td>
<td style="vertical-align: bottom; border-bottom: black 1.5pt solid"> </td>
<td style="vertical-align: bottom; border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 8pt">495,993</font></td>
<td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 1.5pt"> </td>
<td style="vertical-align: bottom; padding-bottom: 1.5pt"> </td>
<td style="vertical-align: bottom; border-bottom: black 1.5pt solid"> </td>
<td style="vertical-align: bottom; border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 8pt">451,048</font></td>
<td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 1.5pt"> </td></tr>
<tr style="background-color: white">
<td style="vertical-align: bottom"> </td>
<td><font style="font-size: 8pt">2.</font></td>
<td nowrap="nowrap" style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td colspan="4" style="vertical-align: bottom; text-align: justify"><font style="font-size: 8pt"><b>Term Loans:</b></font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"> </td>
<td nowrap="nowrap" style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"> </td>
<td nowrap="nowrap" style="vertical-align: bottom"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: bottom; width: 1%"> </td>
<td style="width: 9%"> </td>
<td nowrap="nowrap" style="vertical-align: bottom; width: 1%"> </td>
<td style="vertical-align: bottom; width: 1%"> </td>
<td style="vertical-align: bottom; width: 1%"> </td>
<td style="vertical-align: bottom; width: 9%; text-align: right"><font style="font-size: 8pt">1.</font></td>
<td nowrap="nowrap" style="vertical-align: bottom; width: 1%"> </td>
<td style="vertical-align: bottom; width: 53%; text-align: justify"><font style="font-size: 8pt">Costis Maritime Corporation and Christos Maritime Corporation</font></td>
<td style="vertical-align: bottom; width: 1%"> </td>
<td style="vertical-align: bottom; width: 1%"> </td>
<td style="vertical-align: bottom; width: 9%; text-align: right"><font style="font-size: 8pt">82,500</font></td>
<td nowrap="nowrap" style="vertical-align: bottom; width: 1%"> </td>
<td style="vertical-align: bottom; width: 1%"> </td>
<td style="vertical-align: bottom; width: 1%"> </td>
<td style="vertical-align: bottom; width: 9%; text-align: right"><font style="font-size: 8pt">78,000</font></td>
<td nowrap="nowrap" style="vertical-align: bottom; width: 1%"> </td></tr>
<tr style="background-color: white">
<td style="vertical-align: bottom"> </td>
<td> </td>
<td nowrap="nowrap" style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">2.</font></td>
<td nowrap="nowrap" style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: justify"><font style="font-size: 8pt">Mas Shipping Co.</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">30,625</font></td>
<td nowrap="nowrap" style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">26,500</font></td>
<td nowrap="nowrap" style="vertical-align: bottom"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: bottom"> </td>
<td> </td>
<td nowrap="nowrap" style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">3.</font></td>
<td nowrap="nowrap" style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: justify"><font style="font-size: 8pt">Montes Shipping Co. and Kelsen Shipping Co.</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">66,000</font></td>
<td nowrap="nowrap" style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">60,000</font></td>
<td nowrap="nowrap" style="vertical-align: bottom"> </td></tr>
<tr style="background-color: white">
<td style="vertical-align: bottom"> </td>
<td> </td>
<td nowrap="nowrap" style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">4.</font></td>
<td nowrap="nowrap" style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: justify"><font style="font-size: 8pt">Capetanissa Maritime Corporation</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">45,000</font></td>
<td nowrap="nowrap" style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">42,500</font></td>
<td nowrap="nowrap" style="vertical-align: bottom"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: bottom"> </td>
<td> </td>
<td nowrap="nowrap" style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">5.</font></td>
<td nowrap="nowrap" style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: justify"><font style="font-size: 8pt">Rena Maritime Corporation</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">42,500</font></td>
<td nowrap="nowrap" style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">40,000</font></td>
<td nowrap="nowrap" style="vertical-align: bottom"> </td></tr>
<tr style="background-color: white">
<td style="vertical-align: bottom"> </td>
<td> </td>
<td nowrap="nowrap" style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">6.</font></td>
<td nowrap="nowrap" style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: justify"><font style="font-size: 8pt">Costamare Inc.</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">60,463</font></td>
<td nowrap="nowrap" style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">55,388</font></td>
<td nowrap="nowrap" style="vertical-align: bottom"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: bottom"> </td>
<td> </td>
<td nowrap="nowrap" style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">7.</font></td>
<td nowrap="nowrap" style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: justify"><font style="font-size: 8pt">Costamare Inc.</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">111,417</font></td>
<td nowrap="nowrap" style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">106,960</font></td>
<td nowrap="nowrap" style="vertical-align: bottom"> </td></tr>
<tr style="background-color: white">
<td style="vertical-align: bottom"> </td>
<td> </td>
<td nowrap="nowrap" style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">8.</font></td>
<td nowrap="nowrap" style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: justify"><font style="font-size: 8pt">Undine Shipping Co., Quentin Shipping Co. and Sander Shipping Co.</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">193,545</font></td>
<td nowrap="nowrap" style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">185,904</font></td>
<td nowrap="nowrap" style="vertical-align: bottom"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: bottom"> </td>
<td> </td>
<td nowrap="nowrap" style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">9.</font></td>
<td nowrap="nowrap" style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: justify"><font style="font-size: 8pt">Raymond Shipping Co. and Terance Shipping Co.</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">126,878</font></td>
<td nowrap="nowrap" style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">121,421</font></td>
<td nowrap="nowrap" style="vertical-align: bottom"> </td></tr>
<tr style="background-color: white">
<td style="vertical-align: bottom"> </td>
<td> </td>
<td nowrap="nowrap" style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">10.</font></td>
<td nowrap="nowrap" style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: justify"><font style="font-size: 8pt">Costamare Inc.</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">68,170</font></td>
<td nowrap="nowrap" style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">62,740</font></td>
<td nowrap="nowrap" style="vertical-align: bottom"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: bottom; padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 1.5pt"> </td>
<td style="vertical-align: bottom; padding-bottom: 1.5pt"> </td>
<td style="vertical-align: bottom; padding-bottom: 1.5pt"> </td>
<td style="vertical-align: bottom; padding-bottom: 1.5pt; text-align: right"><font style="font-size: 8pt">11.</font></td>
<td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 1.5pt"> </td>
<td style="vertical-align: bottom; padding-bottom: 1.5pt; text-align: justify"><font style="font-size: 8pt">Uriza Shipping S.A.</font></td>
<td style="vertical-align: bottom; padding-bottom: 1.5pt"> </td>
<td style="vertical-align: bottom; border-bottom: black 1.5pt solid"> </td>
<td style="vertical-align: bottom; border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 8pt">-</font></td>
<td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 1.5pt"> </td>
<td style="vertical-align: bottom; padding-bottom: 1.5pt"> </td>
<td style="vertical-align: bottom; border-bottom: black 1.5pt solid"> </td>
<td style="vertical-align: bottom; border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 8pt">39,000</font></td>
<td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 1.5pt"> </td></tr>
<tr style="background-color: white">
<td style="vertical-align: bottom; padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 1.5pt"> </td>
<td style="vertical-align: bottom; padding-bottom: 1.5pt"> </td>
<td style="vertical-align: bottom; padding-bottom: 1.5pt"> </td>
<td style="vertical-align: bottom; padding-bottom: 1.5pt; text-align: right"> </td>
<td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 1.5pt"> </td>
<td style="vertical-align: bottom; padding-bottom: 1.5pt; text-align: justify"> </td>
<td style="vertical-align: bottom; padding-bottom: 1.5pt"> </td>
<td style="vertical-align: bottom; border-bottom: black 1.5pt solid"> </td>
<td style="vertical-align: bottom; border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 8pt">827,098</font></td>
<td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 1.5pt"> </td>
<td style="vertical-align: bottom; padding-bottom: 1.5pt"> </td>
<td style="vertical-align: bottom; border-bottom: black 1.5pt solid"> </td>
<td style="vertical-align: bottom; border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 8pt">818,413</font></td>
<td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 1.5pt"> </td></tr>
</table>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 3pt 0; text-align: justify; text-indent: 0.5in"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: bottom">
<td style="width: 78%; padding-bottom: 1.5pt"><font style="font-size: 8pt"><b>Total</b></font></td>
<td style="width: 1%; padding-bottom: 1.5pt"> </td>
<td style="width: 1%; border-bottom: black 1.5pt solid"> </td>
<td style="width: 8%; border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 8pt"><b>1,323,091</b></font></td>
<td nowrap="nowrap" style="width: 1%; padding-bottom: 1.5pt"> </td>
<td style="width: 1%; padding-bottom: 1.5pt"> </td>
<td style="width: 1%; border-bottom: black 1.5pt solid"> </td>
<td style="width: 8%; border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 8pt"><b>1,269,461</b></font></td>
<td nowrap="nowrap" style="width: 1%; padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 1.5pt; text-align: justify"><font style="font-size: 8pt"><b>Less: Deferred financing costs</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 8pt">(4,499</font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"><font style="font-size: 8pt">)</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 8pt">(4,409</font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"><font style="font-size: 8pt">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1.5pt; text-align: justify"><font style="font-size: 8pt"><b>Total long term debt, net</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 8pt">1,318,592</font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 8pt">1,265,052</font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="text-align: justify"><font style="font-size: 8pt"><b>Less: Long-term debt current portion</b></font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">(185,259</font></td>
<td nowrap="nowrap"><font style="font-size: 8pt">)</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">(189,592</font></td>
<td nowrap="nowrap"><font style="font-size: 8pt">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1.5pt; text-align: justify"><font style="font-size: 8pt"><b>Add: Deferred financing costs, current portion</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 8pt">1,431</font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 8pt">1,476</font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 3pt; text-align: justify"><font style="font-size: 8pt"><b>Total long term debt, non-current, net</b></font></td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 8pt">1,134,764</font></td>
<td nowrap="nowrap" style="padding-bottom: 3pt"> </td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 8pt">1,076,936</font></td>
<td nowrap="nowrap" style="padding-bottom: 3pt"> </td></tr>
</table>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 3pt 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 3pt 0"><b>A. 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: 3pt 0; text-align: justify">The outstanding balance of the Facility
as of June 30, 2016, is repayable in 8 equal, consecutive quarterly installments, of $22,473 each plus a balloon payment of $271,264
payable together with the last installment.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 3pt 0; text-align: justify">The Facility, as of June 30, 2016, 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: 3pt 0; text-align: justify">The Facility and certain of the term loans
described under Note 10.B 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.B 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.<b> </b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 3pt 0; text-align: justify"><b>B. Term loans: </b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 3pt 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 June 30, 2016, the outstanding balance of the loan of $78,000 is repayable in 4 equal semi-annual
installments of $4,500, each from November 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: 3pt 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 June 30, 2016, the outstanding balance of the loan of $26,500 is repayable in 4 equal semi-annual installments
of $4,125, each from August 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: 3pt 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>. On January 27, 2016, these two subsidiaries of Costamare entered into a supplemental agreement with the bank in order
to extend the repayment of the then outstanding loan amount of $66,000 and amend the repayment schedule. As at June 30, 2016, the
outstanding balance of the loan of $60,000 is repayable in 9 consecutive semi-annual variable installments from December 2016 until
December 2020 and a balloon payment of $12,000 payable together with the last installment.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 3pt 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 June 30, 2016, the outstanding balance of the loan of $42,500 is repayable in 5 equal semi-annual
installments of $2,500 each from August 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: 3pt 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 June 30, 2016, the outstanding balance of the loan of $40,000 is repayable in 4 equal semi-annual
installments of $2,500 each from August 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: 3pt 0; text-align: justify">6. In November 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 June 30, 2016, 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>and<i>
MSC Itea</i>, respectively. As at June 30, 2016, the outstanding balance of the tranche (a) of the loan of $20,213 is repayable
in 13 equal quarterly installments of $962.5 from August 2016 to August 2019 and a balloon payment of $7,700 payable together with
the last installment. As at June 30, 2016, the outstanding balance of the tranche (b) of the loan of $23,100 is repayable in 14
equal quarterly installments of $1,050 from July 2016 to October 2019 and a balloon payment of $8,400 payable together with the
last installment. As at June 30, 2016, the outstanding balance of the tranche (c) of the loan of $12,075 is repayable in 15 equal
quarterly installments of $525 from August 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: 3pt 0; text-align: justify">7. In April 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 June
30, 2016, the outstanding balance of the loan of $106,960 is repayable in 10 equal semi-annual installments of $4,456.7 from July
2016 until January 2021 and a balloon payment of $62,393 payable together with the last installment. On July 6, 2016 and July 15,
2016, the outstanding balance of the loan was fully repaid under the sale and leaseback transaction described in Note 21(c).</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 3pt 0; text-align: justify">8. In August 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 June 30, 2016, the aggregate outstanding
balance of tranches (a) and (b) of $122,238 relating to Hull S4020 (<i>Valor</i>) and Hull S4022 (<i>Valiant</i>), is each repayable
in 16 equal quarterly installments for each tranche of $1,273.4 from July 2016 to June 2020 and a balloon payment for each tranche
of $40,744.8 payable together with the last installment. As at June 30, 2016, the outstanding balance of the tranche (c) of $63,666
relating to Hull S4024 (<i>Vantage</i>) is repayable in 18 equal quarterly installments of $1,273.4 and a balloon payment payable
together with the last installment of $40,744.8 from August 2016 to November 2020.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 3pt 0; text-align: justify">9. In October 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 June 30, 2016, the outstanding balance of the tranche (a) of $60,028 relating to Hull S4021 (<i>Value</i>), is repayable in
16 equal quarterly installments of $1,364.3 from September 2016 to June 2020 and a balloon payment of $38,199.6 payable together
with the last installment. As at June 30, 2016, the outstanding balance of tranche (b) of the loan of $61,393 relating to Hull
S4023 (<i>Valence</i>) is repayable in 17 equal quarterly installments of $1,364.3 from August 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: 3pt 0; text-align: justify">10. In October 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 June 30, 2016, the outstanding balance of $62,740 is repayable
in 10 equal quarterly installments of $2,715 from September 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: 3pt 0; text-align: justify">11. On May 6, 2016, Uriza Shipping S.A. wholly-owned
subsidiary of the Company entered into a loan agreement with a bank for an amount of up to $39,000 for general corporate purposes.
On May 11, 2016 the Company drew the amount of $39,000. As of June 30, 2016, the outstanding balance of $39,000 is repayable in
20 equal quarterly installments of $1,083.3, from August 2016 to May 2021 and a balloon payment of $17,333.3 payable together with
the last installment.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 3pt 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: 3pt 0; text-align: justify">Following the repayment of the loan 10.B.7
as discussed in Note 21(c) the annual principal payments required to be made after June 30, 2016, are as follows:</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 3pt 0; text-align: justify; text-indent: 0.5in"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt; text-align: justify"><font style="font-size: 8pt"> <b><u>Year ending December 31,</u></b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 8pt"><b>Amount</b></font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 89%; text-align: justify"><font style="font-size: 8pt">2016</font></td>
<td style="width: 1%; text-align: right"> </td>
<td style="width: 1%"> </td>
<td style="width: 8%; text-align: right"><font style="font-size: 8pt">90,339</font></td>
<td nowrap="nowrap" style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="text-align: justify"><font style="font-size: 8pt">2017</font></td>
<td style="text-align: right"> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">180,679</font></td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="text-align: justify"><font style="font-size: 8pt">2018</font></td>
<td style="text-align: right"> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">559,466</font></td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="text-align: justify"><font style="font-size: 8pt">2019</font></td>
<td style="text-align: right"> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">65,816</font></td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="text-align: justify"><font style="font-size: 8pt">2020</font></td>
<td style="text-align: right"> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">246,701</font></td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1.5pt; text-align: justify"><font style="font-size: 8pt">2021</font></td>
<td style="padding-bottom: 1.5pt; text-align: right"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 8pt">19,500</font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td> </td>
<td style="padding-bottom: 3pt; text-align: right"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 8pt"><b>1,162,501</b></font></td>
<td nowrap="nowrap" style="padding-bottom: 3pt"> </td></tr>
</table>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 3pt 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 3pt 0; text-align: justify">The interest rates of Costamare’s
long-term debt at December 31, 2015 and June 30, 2016, were in the range of 1.11%-6.75% and 1.61%-6.75%, respectively. The weighted
average interest rate as at December 31, 2015 and June 30, 2016, was 4.2% and 4.3%, respectively.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 3pt 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 six-month periods ended June 30, 2015 and 2016,
amounted to $31,829 and $26,613, respectively and is included in Interest and finance costs in the accompanying consolidated statements
of income.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 3pt 0; text-align: justify"><b>C. Financing Costs</b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 3pt 0; text-align: justify">The amounts of financing costs included
in the loan balances are analyzed as follows:</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 3pt 0"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: bottom">
<td style="width: 89%; padding-bottom: 1.5pt; text-decoration: underline; text-align: justify"><font style="font-size: 8pt"><b><u>Balance, December 31, 2015</u></b></font></td>
<td style="width: 1%; padding-bottom: 1.5pt; text-align: right"> </td>
<td style="width: 1%"> </td>
<td style="width: 8%; text-align: right"><font style="font-size: 8pt"><b>4,499</b></font></td>
<td nowrap="nowrap" style="width: 1%; padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="text-align: justify"><font style="font-size: 8pt">Additions</font></td>
<td style="text-align: right"> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">682</font></td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1.5pt; text-align: justify"><font style="font-size: 8pt">Amortization</font></td>
<td style="padding-bottom: 1.5pt; text-align: right"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 8pt">(772</font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"><font style="font-size: 8pt">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 1.5pt; text-align: justify"><font style="font-size: 8pt"><b>Balance, June 30, 2016</b></font></td>
<td style="padding-bottom: 1.5pt; text-align: right"> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt"><b>4,409</b></font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1.5pt; text-align: justify"><font style="font-size: 8pt"><b>Less: Current portion of financing costs</b></font></td>
<td style="padding-bottom: 1.5pt; text-align: right"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 8pt">(1,476</font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"><font style="font-size: 8pt">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 3pt; text-align: justify"><font style="font-size: 8pt"><b>Financing costs, non-current portion</b></font></td>
<td style="padding-bottom: 3pt; text-align: right"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 8pt"><b>2,933</b></font></td>
<td nowrap="nowrap" style="padding-bottom: 3pt"> </td></tr>
</table>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 3pt 0"><br />
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: 3pt 0; text-align: justify">Between January and April 2014 we took delivery
of the newbuild vessels <i>MSC Azov</i>, <i>MSC Ajaccio</i> and <i>MSC Amalfi</i>.<i> </i>Upon the delivery of each vessel,
the Company agreed with a financial institution to refinance the then outstanding balance of the loans relating to<i> </i>these
vessels, by entering into a ten-year sale and leaseback transaction for each vessel upon their respective deliveries. The shipbuilding
contracts were novated to the 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: 3pt 0; text-align: justify">The sale and leaseback transactions were
classified as capital leases. 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: 3pt 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 six-month periods ended
June 30, 2015 and 2016, amounted to $3,759 and $3,770, respectively, and is included in Depreciation in the accompanying consolidated
statements of income. As of December 31, 2015 and June 30, 2016, the net book value of the three vessels amounted to $242,966
and $239,196, respectively and is separately reflected as Capital leased assets, in the accompanying consolidated balance sheets. </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 3pt 0; text-align: justify">The balance of prepaid lease rentals, as
of December 31, 2015 and June 30, 2016, is analyzed as follows:</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 3pt 0"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
<tr>
<td style="vertical-align: top; padding-bottom: 1.5pt"> </td>
<td style="vertical-align: bottom; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="vertical-align: top; border-bottom: black 1.5pt solid">
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>December 31, </b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>2015</b></p></td>
<td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 1.5pt"> </td>
<td style="vertical-align: bottom; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="vertical-align: bottom; border-bottom: black 1.5pt solid">
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>June 30, </b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>2016</b></p></td>
<td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 1.5pt"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: top; width: 78%; text-align: justify"><font style="font-size: 8pt">Prepaid lease rentals</font></td>
<td style="vertical-align: bottom; width: 1%"> </td>
<td style="vertical-align: bottom; width: 1%"> </td>
<td style="vertical-align: bottom; width: 8%; text-align: right"><font style="font-size: 8pt">45,793</font></td>
<td nowrap="nowrap" style="vertical-align: bottom; width: 1%"> </td>
<td style="vertical-align: bottom; width: 1%"> </td>
<td style="vertical-align: bottom; width: 1%"> </td>
<td style="vertical-align: bottom; width: 8%; text-align: right"><font style="font-size: 8pt">40,811</font></td>
<td nowrap="nowrap" style="vertical-align: bottom; width: 1%"> </td></tr>
<tr style="background-color: white">
<td style="vertical-align: top; padding-bottom: 1.5pt; text-align: justify"><font style="font-size: 8pt">Less: Amortization of prepaid lease rentals</font></td>
<td style="vertical-align: bottom; padding-bottom: 1.5pt"> </td>
<td style="vertical-align: bottom; border-bottom: black 1.5pt solid"> </td>
<td style="vertical-align: bottom; border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 8pt">(4,982</font></td>
<td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 1.5pt"><font style="font-size: 8pt">)</font></td>
<td style="vertical-align: bottom; padding-bottom: 1.5pt"> </td>
<td style="vertical-align: bottom; border-bottom: black 1.5pt solid"> </td>
<td style="vertical-align: bottom; border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 8pt">(2,477</font></td>
<td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 1.5pt"><font style="font-size: 8pt">)</font></td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: top; text-align: justify"><font style="font-size: 8pt"><b>Prepaid lease rentals</b></font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt"><b>40,811</b></font></td>
<td nowrap="nowrap" style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt"><b>38,334</b></font></td>
<td nowrap="nowrap" style="vertical-align: bottom"> </td></tr>
<tr style="background-color: white">
<td style="vertical-align: top; padding-bottom: 1.5pt; text-align: justify"><font style="font-size: 8pt">Less: current portion</font></td>
<td style="vertical-align: bottom; padding-bottom: 1.5pt"> </td>
<td style="vertical-align: bottom; border-bottom: black 1.5pt solid"> </td>
<td style="vertical-align: bottom; border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 8pt">(4,982</font></td>
<td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 1.5pt"><font style="font-size: 8pt">)</font></td>
<td style="vertical-align: bottom; padding-bottom: 1.5pt"> </td>
<td style="vertical-align: bottom; border-bottom: black 1.5pt solid"> </td>
<td style="vertical-align: bottom; border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 8pt">(4,975</font></td>
<td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 1.5pt"><font style="font-size: 8pt">)</font></td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: top; padding-bottom: 3pt; text-align: justify"><font style="font-size: 8pt"><b>Non-current portion</b></font></td>
<td style="vertical-align: bottom; padding-bottom: 3pt"> </td>
<td style="vertical-align: bottom; border-bottom: black 2.25pt double"> </td>
<td style="vertical-align: bottom; border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 8pt"><b>35,829</b></font></td>
<td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 3pt"> </td>
<td style="vertical-align: bottom; padding-bottom: 3pt"> </td>
<td style="vertical-align: bottom; border-bottom: black 2.25pt double"> </td>
<td style="vertical-align: bottom; border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 8pt"><b>33,359</b></font></td>
<td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 3pt"> </td></tr>
</table>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 3pt 0"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 3pt 0; text-align: justify">The capital lease obligations amounting
to $226,499 as at June 30, 2016, 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 six-month periods ended
June 30, 2015 and 2016 amounted to $8,615 and $8,177, 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: 3pt 0; text-align: justify">The annual lease payments in aggregate required
under the capital leases after June 30, 2016, are as follows:</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 3pt 0"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
<tr>
<td style="vertical-align: top; padding-bottom: 1.5pt; text-decoration: underline; text-align: justify"><font style="font-size: 8pt"><b><u>Year ending December 31,</u></b></font></td>
<td style="vertical-align: bottom; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="vertical-align: top; border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 8pt"><b>Amount</b></font></td>
<td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 1.5pt"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: top; width: 89%; text-align: justify"><font style="font-size: 8pt">2016</font></td>
<td style="vertical-align: bottom; width: 1%"> </td>
<td style="vertical-align: bottom; width: 1%"> </td>
<td style="vertical-align: bottom; width: 8%; text-align: right"><font style="font-size: 8pt">15,419</font></td>
<td nowrap="nowrap" style="vertical-align: bottom; width: 1%"> </td></tr>
<tr style="background-color: white">
<td style="vertical-align: top; text-align: justify"><font style="font-size: 8pt">2017</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">30,698</font></td>
<td nowrap="nowrap" style="vertical-align: bottom"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: top; text-align: justify"><font style="font-size: 8pt">2018</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">30,698</font></td>
<td nowrap="nowrap" style="vertical-align: bottom"> </td></tr>
<tr style="background-color: white">
<td style="vertical-align: top; text-align: justify"><font style="font-size: 8pt">2019</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">30,699</font></td>
<td nowrap="nowrap" style="vertical-align: bottom"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: top; text-align: justify"><font style="font-size: 8pt">2020</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">30,783</font></td>
<td nowrap="nowrap" style="vertical-align: bottom"> </td></tr>
<tr style="background-color: white">
<td style="vertical-align: top; padding-bottom: 1.5pt; text-align: justify"><font style="font-size: 8pt">2021 and thereafter</font></td>
<td style="vertical-align: bottom; padding-bottom: 1.5pt"> </td>
<td style="vertical-align: bottom; border-bottom: black 1.5pt solid"> </td>
<td style="vertical-align: bottom; border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 8pt">176,771</font></td>
<td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 1.5pt"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: top; padding-bottom: 1.5pt; text-align: justify"><font style="font-size: 8pt"><b>Total</b></font></td>
<td style="vertical-align: bottom; padding-bottom: 1.5pt"> </td>
<td style="vertical-align: bottom; border-bottom: black 1.5pt solid"> </td>
<td style="vertical-align: bottom; border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 8pt"><b>315,068</b></font></td>
<td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 1.5pt"> </td></tr>
<tr style="background-color: white">
<td style="vertical-align: top; padding-bottom: 1.5pt; text-align: justify"><font style="font-size: 8pt">Less: Amount of interest</font></td>
<td style="vertical-align: bottom; padding-bottom: 1.5pt"> </td>
<td style="vertical-align: bottom; border-bottom: black 1.5pt solid"> </td>
<td style="vertical-align: bottom; border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 8pt">(88,569</font></td>
<td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 1.5pt"><font style="font-size: 8pt">)</font></td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: top; padding-bottom: 1.5pt; text-align: justify"><font style="font-size: 8pt"><b>Total lease payments</b></font></td>
<td style="vertical-align: bottom; padding-bottom: 1.5pt"> </td>
<td style="vertical-align: bottom; border-bottom: black 1.5pt solid"> </td>
<td style="vertical-align: bottom; border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 8pt"><b>226,499</b></font></td>
<td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 1.5pt"> </td></tr>
<tr style="background-color: white">
<td style="vertical-align: top; padding-bottom: 1.5pt; text-align: justify"><font style="font-size: 8pt"><b>Less: Financing costs, net</b></font></td>
<td style="vertical-align: bottom; padding-bottom: 1.5pt"> </td>
<td style="vertical-align: bottom; border-bottom: black 1.5pt solid"> </td>
<td style="vertical-align: bottom; border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 8pt"><b>(1,394</b></font></td>
<td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 1.5pt"><font style="font-size: 8pt"><b>)</b></font></td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: top; padding-bottom: 3pt; text-align: justify"><font style="font-size: 8pt"><b>Total lease payments, net</b></font></td>
<td style="vertical-align: bottom; padding-bottom: 3pt"> </td>
<td style="vertical-align: bottom; border-bottom: black 2.25pt double"> </td>
<td style="vertical-align: bottom; border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 8pt"><b>225,105</b></font></td>
<td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 3pt"> </td></tr>
</table>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 3pt 0; text-indent: 0.5in"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 3pt 0; text-align: justify">The total capital lease obligations, net
of related financing costs are presented in the accompanying June 30, 2016, consolidated balance sheet as follows:</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 3pt 0; text-indent: 0.5in"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
<tr style="background-color: #CCEEFF">
<td style="vertical-align: top; width: 89%; text-align: justify"><font style="font-size: 8pt">Capital lease obligation – current</font></td>
<td style="vertical-align: bottom; width: 1%"> </td>
<td style="vertical-align: bottom; width: 1%"> </td>
<td style="vertical-align: bottom; width: 8%; text-align: right"><font style="font-size: 8pt">15,013</font></td>
<td nowrap="nowrap" style="vertical-align: bottom; width: 1%"> </td></tr>
<tr style="background-color: white">
<td style="vertical-align: top; text-align: justify"><font style="font-size: 8pt">Less: current portion of financing costs</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">(223</font></td>
<td nowrap="nowrap" style="vertical-align: bottom"><font style="font-size: 8pt">)</font></td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: top; text-align: justify"><font style="font-size: 8pt">Capital lease obligation – non current</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">211,486</font></td>
<td nowrap="nowrap" style="vertical-align: bottom"> </td></tr>
<tr style="background-color: white">
<td style="vertical-align: top; padding-bottom: 1.5pt; text-align: justify"><font style="font-size: 8pt">Less: non-current portion of financing costs</font></td>
<td style="vertical-align: bottom; padding-bottom: 1.5pt"> </td>
<td style="vertical-align: bottom; border-bottom: black 1.5pt solid"> </td>
<td style="vertical-align: bottom; border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 8pt">(1,171</font></td>
<td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 1.5pt"><font style="font-size: 8pt">)</font></td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: top; padding-bottom: 3pt"> </td>
<td style="vertical-align: bottom; padding-bottom: 3pt"> </td>
<td style="vertical-align: bottom; border-bottom: black 2.25pt double"> </td>
<td style="vertical-align: bottom; border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 8pt"><b>225,105</b></font></td>
<td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 3pt"> </td></tr>
</table>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 3pt 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, 2015 and June 30, 2016, 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.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 3pt 0; text-align: justify">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. As at June 30, 2016, the net accrued charter revenue, totaling to ($33,302) comprises $456 separately
reflected in Current assets, $391 separately reflected in Non-current assets, and ($34,149) (discussed in (b) below) included in
Unearned revenue in current and non-current liabilities in the accompanying 2016 consolidated balance sheet. The maturities of
the net accrued charter revenue of June 30, 2016 as of December 31 of each year presented below are as follows:</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 3pt 0; text-align: justify; text-indent: 0.5in"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
<tr>
<td style="vertical-align: bottom; padding-bottom: 1.5pt; text-decoration: underline"><font style="font-size: 8pt"><b><u>Year ending December 31,</u></b></font></td>
<td style="vertical-align: bottom; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 8pt"><b>Amount</b></font></td>
<td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 89%; text-align: justify"><font style="font-size: 8pt">2016</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 8%; text-align: right"><font style="font-size: 8pt">(5,667</font></td>
<td nowrap="nowrap" style="width: 1%"><font style="font-size: 8pt">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="text-align: justify"><font style="font-size: 8pt">2017</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">(11,336</font></td>
<td nowrap="nowrap"><font style="font-size: 8pt">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="text-align: justify"><font style="font-size: 8pt">2018</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">(8,897</font></td>
<td nowrap="nowrap"><font style="font-size: 8pt">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="text-align: justify"><font style="font-size: 8pt">2019</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">(6,602</font></td>
<td nowrap="nowrap"><font style="font-size: 8pt">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 1.5pt; text-align: justify"><font style="font-size: 8pt">2020</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 8pt">(800</font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"><font style="font-size: 8pt">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 3pt; text-align: justify"> </td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 8pt"><b>(33,302</b></font></td>
<td nowrap="nowrap" style="padding-bottom: 3pt"><font style="font-size: 8pt"><b>)</b></font></td></tr>
</table>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 3pt 0"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 3pt 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, 2015 and June 30, 2016, 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>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt">
<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; text-indent: 0.5in"> </p></td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid">
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>December 31, </b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>2015</b></p></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid">
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>June 30, </b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>2016</b></p></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 78%; text-align: justify"><font style="font-size: 8pt">Hires collected in advance</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 8%; text-align: right"><font style="font-size: 8pt">8,469</font></td>
<td nowrap="nowrap" style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 8%; text-align: right"><font style="font-size: 8pt">3,874</font></td>
<td nowrap="nowrap" style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1.5pt; text-align: justify"><font style="font-size: 8pt">Charter revenue resulting from varying charter rates</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 8pt">36,395</font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 8pt">34,149</font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="text-align: justify"><font style="font-size: 8pt"><b>Total</b></font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt"><b>44,864</b></font></td>
<td nowrap="nowrap"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt"><b>38,023</b></font></td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1.5pt; text-align: justify"><font style="font-size: 8pt"><b>Less current portion</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 8pt">(18,356</font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"><font style="font-size: 8pt">)</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 8pt">(15,618</font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"><font style="font-size: 8pt">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 3pt; text-align: justify"><font style="font-size: 8pt"><b>Non-current portion</b></font></td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 8pt"><b>26,508</b></font></td>
<td nowrap="nowrap" style="padding-bottom: 3pt"> </td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 8pt"><b>22,405</b></font></td>
<td nowrap="nowrap" style="padding-bottom: 3pt"> </td></tr>
</table>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 3pt 0; text-align: justify"><b><i>(a) Time charters:</i></b> As
at June 30, 2016, the Company has entered into time charter arrangements on all of its vessels in operation, with the exception
of one vessel, with international liner operators. These arrangements as at June 30, 2016, have remaining terms of up to 93 months.
After June 30, 2016, 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: 3pt 0"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt; text-align: justify"><font style="font-size: 8pt"><b>Year ending December 31,</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 8pt"><b>Amount</b></font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 89%; text-align: justify"><font style="font-size: 8pt">2016</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 8%; text-align: right"><font style="font-size: 8pt">220,755</font></td>
<td nowrap="nowrap" style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="text-align: justify"><font style="font-size: 8pt">2017</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">376,706</font></td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="text-align: justify"><font style="font-size: 8pt">2018</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">198,759</font></td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="text-align: justify"><font style="font-size: 8pt">2019</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">122,306</font></td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="text-align: justify"><font style="font-size: 8pt">2020</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">93,841</font></td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1.5pt; text-align: justify"><font style="font-size: 8pt">2021 and thereafter</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 8pt">217,011</font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 3pt; text-align: justify"> </td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 8pt"><b>1,229,378</b></font></td>
<td nowrap="nowrap" style="padding-bottom: 3pt"> </td></tr>
</table>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 3pt 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 3pt 0; text-align: justify"><b><i>(b)</i></b> <b><i>Capital Commitments:
</i></b>Pursuant to the Restated Framework Deed the Company has a contractual commitment of approximately $58,845 representing
49% of the remaining construction cost of five vessels under construction, 40% of the remaining construction cost of three vessels
under construction and 25% of the construction cost of two vessels under construction (Note 9). </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 3pt 0; text-align: justify"><b><i>(c) Debt Guarantees with respect to
entities formed under the Framework Deed:</i> </b>In connection with the debt financing of 4 of the 11,000 TEU vessels on
order through entities formed under the Framework Deed, Costamare agreed to guarantee 100% of the relevant debt of the following
entities formed under the Framework Deed with York, Ainsley Maritime Co., Ambrose Maritime Co., Kemp Maritime Co. and Hyde Maritime
Co., which own Hulls NCP0115, NCP0116, NCP0113 and NCP0114, respectively. As at June 30 2016, Costamare has guaranteed $88,000
of debt related to Kemp Maritime Co. and Hyde Maritime (Note 9). In connection with the guarantee, York has agreed to an arrangement
whereby, in the event Costamare is required to pay under any guarantee, Costamare is entitled to acquire all of the shares in the
entities for whose benefit the guarantee has been issued that it does not already own for nominal consideration.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 3pt 0; text-align: justify"><b><i>(d) 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: 3pt 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: 3pt 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: 3pt 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 3pt 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 Konstantakopoulos 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: 3pt 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: 3pt 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: 3pt 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: 3pt 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: 3pt 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: 3pt 0; text-align: justify">During 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). 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). On March 31, 2016 and June 30, 2016 the Company issued 299,200 shares, in aggregate, 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 during the six-month period ended June 30,
2016. </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 3pt 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 a dividend
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: 3pt 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 a dividend 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: 3pt 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 a dividend 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.<b><i> </i></b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 3pt 0 3pt 0pt; text-align: justify; text-indent: 0pt"><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) 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: 3pt 0; text-align: justify"><b><i>(d) Dividends declared and / or paid</i></b>:
During the six-month period ended June 30, 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 and (ii) $21,736 or $0.28 per common share for the first quarter of 2015. During the
six-month period ended June 30, 2016, the Company declared and paid to its common stockholders (i) $21,866 or $0.29<b> </b>per
common share for the fourth quarter of 2015 and (ii) $21,908 or $0.29 per common share for the first quarter of 2016. During the
six-month period ended June 30, 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 and $953 or $0.476563 per share for the period from January
15, 2015 to April 14, 2015. During the six-month period ended June 30, 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 and $2,125 or $0.531250
per share for the period from January 15, 2015 to April 14, 2015. During the six-month period ended June 30, 2016 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, 2015 to
January 14, 2016 and $953 or $0.476563 per share for the period from January 15, 2016 to April 14, 2016. During the six-month period
ended June 30, 2016, 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, 2015 to January 14, 2016 and $2,125 or $0.531250 per share for the period from January 15, 2016 to
April 14, 2016. During the six-month period ended June 30, 2016, the Company declared and paid to its holders of Series D
Preferred Stock $2,188 or $0.546875 per share for the period from October 15, 2015 to January 14, 2016 and $2,188 or $0.546875
per share for the period from January 15, 2016 to April 14, 2016.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 3pt 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 six-month periods ended June 30, 2015 and 2016, amounted to $7,313 and $10,473, respectively.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 3pt 0"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="6" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 8pt"><b>June 30,</b></font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 8pt"><b>2015</b></font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 8pt"><b>2016</b></font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 8pt"><b>Basic EPS</b></font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 8pt"><b>Basic EPS</b></font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 78%; text-align: justify"><font style="font-size: 8pt">Net income</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 8pt">$</font></td>
<td style="width: 8%; text-align: right"><font style="font-size: 8pt">70,613</font></td>
<td nowrap="nowrap" style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 8pt">$</font></td>
<td style="width: 8%; text-align: right"><font style="font-size: 8pt">72,038</font></td>
<td nowrap="nowrap" style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1.5pt; text-align: justify"><font style="font-size: 8pt">Less: paid and accrued earnings allocated to Preferred Stock</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 8pt">(7,313</font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"><font style="font-size: 8pt">)</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 8pt">(10,473</font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"><font style="font-size: 8pt">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 1.5pt; text-align: justify"><font style="font-size: 8pt">Net income available to common stockholders</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 8pt">63,300</font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 8pt">61,565</font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1.5pt; text-align: justify"><font style="font-size: 8pt">Weighted average number of common shares, basic and diluted</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 8pt">74,876,866</font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 8pt">75,474,844</font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 3pt; text-align: justify"><font style="font-size: 8pt">Earnings per common share, basic and diluted</font></td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 8pt">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 8pt">0.85</font></td>
<td nowrap="nowrap" style="padding-bottom: 3pt"> </td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 8pt">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 8pt">0.82</font></td>
<td nowrap="nowrap" style="padding-bottom: 3pt"> </td></tr>
</table>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 3pt 0; text-align: justify; text-indent: 0pt"> The amounts in
the accompanying consolidated statements of income are analyzed as follows:</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 3pt 0; text-align: justify; text-indent: 0.5in"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="6" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 8pt"><b>Six-month periods ended June 30,</b></font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 8pt"><b>2015</b></font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 8pt"><b>2016</b></font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 78%; text-align: justify"><font style="font-size: 8pt">Interest expense</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 8%; text-align: right"><font style="font-size: 8pt">22,667</font></td>
<td nowrap="nowrap" style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 8%; text-align: right"><font style="font-size: 8pt">23,301</font></td>
<td nowrap="nowrap" style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="text-align: justify"><font style="font-size: 8pt">Swap effect</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">17,777</font></td>
<td nowrap="nowrap"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">11,489</font></td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="text-align: justify"><font style="font-size: 8pt">Amortization and write-off of financing costs</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">946</font></td>
<td nowrap="nowrap"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">885</font></td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="text-align: justify"><font style="font-size: 8pt">Commitment fees</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">349</font></td>
<td nowrap="nowrap"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">-</font></td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="text-align: justify"><font style="font-size: 8pt">Other financing costs</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">-</font></td>
<td nowrap="nowrap"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">866</font></td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1.5pt; text-align: justify"><font style="font-size: 8pt">Bank charges and other</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 8pt">131</font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 8pt">135</font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 3pt"> </td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 8pt"><b>41,870</b></font></td>
<td nowrap="nowrap" style="padding-bottom: 3pt"> </td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 8pt"><b>36,676</b></font></td>
<td nowrap="nowrap" style="padding-bottom: 3pt"> </td></tr>
</table>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 3pt 0; text-align: justify">Under the laws of the countries of incorporation
for the vessel owning companies and/or of the countries of registration of the vessels, 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: 3pt 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: 3pt 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: 3pt 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: 3pt 0; text-align: justify">At December 31, 2015 and June 30, 2016,
the Company had interest rate swap agreements with an outstanding notional amount of $904,627 and $841,119, respectively. The fair
value of these interest rate swaps outstanding at December 31, 2015 and June 30, 2016, amounted to a liability of $39,654 and a
liability of $43,595, 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: 3pt 0; text-align: justify">During the six-month periods ended June
30, 2015 and 2016, the realized ineffectiveness on the interest rate swaps discussed under (a) above was a loss of $60, and $nil,
respectively and are included in Gain / (Loss) on derivative instruments, net in the accompanying consolidated statements of income.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 3pt 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 $27,872.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 3pt 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, 2015 and June 30, 2016, the Company had interest rate swap agreements
with an outstanding notional amount of $207,439 and $202,393, 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, 2015 and June 30, 2016,
was a liability of $12,463 and a liability of $10,649, 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: 3pt 0; text-align: justify"><b><i>(c) Foreign currency agreements: </i></b>As
of June 30, 2016, the Company was engaged in four Euro/U.S. dollar forward agreements totaling $5,000 at an average forward rate
of Euro/U.S. dollar 1.0691 expiring in monthly intervals up to August 2016.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 3pt 0; text-align: justify">As of December 31, 2015, the Company was
engaged in sixteen 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: 3pt 0; text-align: justify">The total change of forward contracts fair
value for the six-month period ended June 30, 2016, was a loss of $158 (gain of $519 for the six-month period ended June 30, 2015)
and is included in Gain / (Loss) on derivative instruments, net in the accompanying consolidated statements of income.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 3pt 0; text-align: justify; text-indent: 0.5in"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
<tr>
<td colspan="17" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 8pt"><b>The Effect of Derivative Instruments for the six-month periods ended June 30, 2015 and 2016</b></font></td>
<td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td colspan="17" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 8pt"><b>Derivatives in ASC 815 Cash Flow Hedging Relationships</b></font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td></tr>
<tr>
<td style="vertical-align: bottom; padding-bottom: 1.5pt"> </td>
<td style="vertical-align: bottom; padding-bottom: 1.5pt"> </td>
<td colspan="6" style="vertical-align: bottom; border-bottom: black 1.5pt 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 nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 1.5pt"> </td>
<td style="vertical-align: bottom; border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 8pt"><b>Location of Gain / (Loss) Recognized in Income on Derivative (Ineffective Portion)</b></font></td>
<td style="vertical-align: bottom; padding-bottom: 1.5pt"> </td>
<td colspan="6" style="vertical-align: top; border-bottom: black 1.5pt 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>
<td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt; text-align: justify"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 8pt"><b>2015</b></font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 8pt"><b>2016</b></font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 8pt"><b>2015</b></font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 8pt"><b>2016</b></font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 26%; text-align: justify; text-indent: 3.15pt"><font style="font-size: 8pt">Interest rate swaps</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 9%; text-align: right"><font style="font-size: 8pt">(15,574</font></td>
<td nowrap="nowrap" style="width: 1%"><font style="font-size: 8pt">)</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 9%; text-align: right"><font style="font-size: 8pt">(14,550</font></td>
<td nowrap="nowrap" style="width: 1%"><font style="font-size: 8pt">)</font></td>
<td style="width: 26%"><font style="font-size: 8pt">Gain / (Loss) on derivative instruments, net</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 9%; text-align: right"><font style="font-size: 8pt">(60</font></td>
<td nowrap="nowrap" style="width: 1%"><font style="font-size: 8pt">)</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 9%; text-align: right"><font style="font-size: 8pt">-</font></td>
<td nowrap="nowrap" style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1.5pt; text-align: justify; text-indent: 3.15pt"><font style="font-size: 8pt">Reclassification to Interest and finance costs</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 8pt">17,777</font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 8pt">11,489</font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt; text-align: justify"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 8pt"><b>--</b></font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 8pt"><b>-</b></font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 3pt; text-align: justify; text-indent: 3.15pt"><font style="font-size: 8pt"><b>Total</b></font></td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 8pt"><b>2,203</b></font></td>
<td nowrap="nowrap" style="padding-bottom: 3pt"> </td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 8pt"><b>(3,061</b></font></td>
<td nowrap="nowrap" style="padding-bottom: 3pt"><font style="font-size: 8pt"><b>)</b></font></td>
<td style="padding-bottom: 3pt; text-align: justify"> </td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 8pt"><b>(60</b></font></td>
<td nowrap="nowrap" style="padding-bottom: 3pt"><font style="font-size: 8pt"><b>)</b></font></td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 8pt"><b>-</b></font></td>
<td nowrap="nowrap" style="padding-bottom: 3pt"> </td></tr>
</table>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 3pt 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 3pt 0; text-align: justify; text-indent: 0.5in"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: bottom">
<td colspan="9" style="border-bottom: black 1.5pt 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>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td></tr>
<tr>
<td style="vertical-align: bottom; padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid">
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in"><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="vertical-align: bottom; padding-bottom: 1.5pt"> </td>
<td colspan="6" style="vertical-align: bottom; border-bottom: black 1.5pt solid">
<p style="font: 8pt Times New Roman, Times, Serif; margin-top: 0; text-align: center; margin-bottom: 0">    <b>Amount of Gain / (Loss)
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>
<td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt; text-align: justify"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 8pt"><b>2015</b></font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 8pt"><b>2016</b></font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 40%"><font style="font-size: 8pt">Non hedging interest rate swaps</font></td>
<td style="width: 38%; text-align: center"><font style="font-size: 8pt">Gain / (Loss) on derivative instruments, net</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 8%; text-align: right"><font style="font-size: 8pt">3,591</font></td>
<td nowrap="nowrap" style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 8%; text-align: right"><font style="font-size: 8pt">(4,101</font></td>
<td nowrap="nowrap" style="width: 1%"><font style="font-size: 8pt">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font-size: 8pt">Ineffective portion of hedging interest rate swaps</font></td>
<td style="text-align: center"><font style="font-size: 8pt">Gain / (Loss) on derivative instruments, net</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">(60</font></td>
<td nowrap="nowrap"><font style="font-size: 8pt">)</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">-</font></td>
<td nowrap="nowrap"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: top; padding-bottom: 1.5pt"><font style="font-size: 8pt">Forward contracts</font></td>
<td style="vertical-align: bottom; padding-bottom: 1.5pt; text-align: center"><font style="font-size: 8pt">Gain / (Loss) on derivative instruments, net</font></td>
<td style="vertical-align: bottom; padding-bottom: 1.5pt"> </td>
<td style="vertical-align: bottom; border-bottom: black 1.5pt solid"> </td>
<td style="vertical-align: bottom; border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 8pt">519</font></td>
<td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 1.5pt"> </td>
<td style="vertical-align: bottom; padding-bottom: 1.5pt"> </td>
<td style="vertical-align: bottom; border-bottom: black 1.5pt solid"> </td>
<td style="vertical-align: bottom; border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 8pt">(158</font></td>
<td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 1.5pt"><font style="font-size: 8pt">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 3pt"><font style="font-size: 8pt"><b>Total</b></font></td>
<td style="padding-bottom: 3pt; text-align: justify"> </td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 8pt"><b>4,050</b></font></td>
<td nowrap="nowrap" style="padding-bottom: 3pt"> </td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 8pt"><b>(4,259</b></font></td>
<td nowrap="nowrap" style="padding-bottom: 3pt"><font style="font-size: 8pt"><b>)</b></font></td></tr>
</table>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 3pt 0; text-align: justify; text-indent: 0.5in"><b> </b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 3pt 0; text-align: justify">The realized loss on non-hedging interest
rate swaps included in “Gain / (Loss) on derivative instruments, net” amounted to $7,873 and $4,343 for the six-month
period ended June 30, 2015 and 2016, respectively.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 3pt 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: 3pt 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), equity method investments, 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, equity method investments
and equity and debt securities by performing ongoing credit evaluations of its customers’ 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: 3pt 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: 3pt 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, 2015 and June 30, 2016, the fair value of these interest rate swaps in aggregate amounted to a liability of $52,117
and $54,244, respectively.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 3pt 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, 2015 and June 30, 2016, amounted
to an asset of $352 and an asset of $194, respectively. </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 3pt 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: 3pt 0; text-align: justify; text-indent: 0.5in"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt; text-align: justify"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid">
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>December 31,</b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>2015</b></p></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid">
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Quoted Prices in</b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Active Markets for</b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Identical Assets</b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>(Level 1)</b></p></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid">
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Significant</b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Other</b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Observable</b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Inputs</b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>(Level 2)</b></p></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid">
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Unobservable</b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Inputs</b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>(Level 3)</b></p></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font-size: 8pt"><b>Recurring measurements:</b></font></td>
<td> </td>
<td colspan="2"> </td>
<td nowrap="nowrap"> </td>
<td> </td>
<td colspan="2"> </td>
<td nowrap="nowrap"> </td>
<td> </td>
<td colspan="2"> </td>
<td nowrap="nowrap"> </td>
<td> </td>
<td colspan="2"> </td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 52%; text-align: justify"><font style="font-size: 8pt">Forward contracts-asset position</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 9%; text-align: right"><font style="font-size: 8pt">352</font></td>
<td nowrap="nowrap" style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 9%; text-align: right"><font style="font-size: 8pt">-</font></td>
<td nowrap="nowrap" style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 9%; text-align: right"><font style="font-size: 8pt">352</font></td>
<td nowrap="nowrap" style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 9%; text-align: right"><font style="font-size: 8pt">-</font></td>
<td nowrap="nowrap" style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1.5pt; text-align: justify"><font style="font-size: 8pt">Interest rate swaps-liability position</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 8pt">(52,117</font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"><font style="font-size: 8pt">)</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 8pt">-</font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 8pt">(52,117</font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"><font style="font-size: 8pt">)</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 8pt">-</font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 3pt; text-align: justify"><font style="font-size: 8pt"><b>Total</b></font></td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 8pt"><b>(51,765</b></font></td>
<td nowrap="nowrap" style="padding-bottom: 3pt"><font style="font-size: 8pt"><b>)</b></font></td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 8pt">-</font></td>
<td nowrap="nowrap" style="padding-bottom: 3pt"> </td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 8pt"><b>(51,765</b></font></td>
<td nowrap="nowrap" style="padding-bottom: 3pt"><font style="font-size: 8pt"><b>)</b></font></td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 8pt">-</font></td>
<td nowrap="nowrap" style="padding-bottom: 3pt"> </td></tr>
</table>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt; text-align: justify"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid">
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>June 30,</b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>2016</b></p></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid">
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Quoted Prices in</b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Active Markets for</b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Identical Assets</b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>(Level 1)</b></p></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid">
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Significant</b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Other</b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Observable</b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Inputs</b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>(Level 2)</b></p></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid">
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Unobservable</b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Inputs</b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>(Level 3)</b></p></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font-size: 8pt"><b>Recurring measurements:</b></font></td>
<td> </td>
<td colspan="2"> </td>
<td nowrap="nowrap"> </td>
<td> </td>
<td colspan="2"> </td>
<td nowrap="nowrap"> </td>
<td> </td>
<td colspan="2"> </td>
<td nowrap="nowrap"> </td>
<td> </td>
<td colspan="2"> </td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 52%; text-align: justify"><font style="font-size: 8pt">Forward contracts-asset position</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 9%; text-align: right"><font style="font-size: 8pt">194</font></td>
<td nowrap="nowrap" style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 9%; text-align: right"><font style="font-size: 8pt">-</font></td>
<td nowrap="nowrap" style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 9%; text-align: right"><font style="font-size: 8pt">194</font></td>
<td nowrap="nowrap" style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 9%; text-align: right"><font style="font-size: 8pt">-</font></td>
<td nowrap="nowrap" style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1.5pt; text-align: justify"><font style="font-size: 8pt">Interest rate swaps-liability position</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 8pt">(54,244</font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"><font style="font-size: 8pt">)</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 8pt">-</font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 8pt">(54,244</font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"><font style="font-size: 8pt">)</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 8pt">-</font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 3pt; text-align: justify"><font style="font-size: 8pt"><b>Total</b></font></td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 8pt"><b>(54,050</b></font></td>
<td nowrap="nowrap" style="padding-bottom: 3pt"><font style="font-size: 8pt"><b>)</b></font></td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 8pt">-</font></td>
<td nowrap="nowrap" style="padding-bottom: 3pt"> </td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 8pt"><b>(54,050</b></font></td>
<td nowrap="nowrap" style="padding-bottom: 3pt"><font style="font-size: 8pt"><b>)</b></font></td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 8pt">-</font></td>
<td nowrap="nowrap" style="padding-bottom: 3pt"> </td></tr>
</table>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 3pt 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 3pt 0; text-align: justify">During the six-month period ended June 30,
2015, Other comprehensive income increased with net gains of $2,254 relating to (i) the change of the fair value of derivatives
that qualify for hedge accounting (loss of $15,574), net of the settlements to net income of derivatives that qualify for hedge
accounting (gain of $17,777) and, (ii) the amounts reclassified from Net settlements on interest rate swaps qualifying for hedge
accounting to depreciation ($51). During the six-month period ended June 30, 2016, Other comprehensive income decreased with net
losses of $3,010 relating to (i) the change of the fair value of derivatives that qualify for hedge accounting (loss of $14,550),
net of the settlements to net income of derivatives that qualify for hedge accounting (gain of $11,489) and, (ii) the amounts reclassified
from Net settlements on interest rate swaps qualifying for hedge accounting to depreciation ($51).</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 3pt 0; text-align: justify">As at June 30, 2015 and 2016, Comprehensive
income amounted to $72,867 and $69,028, 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 $27,872.</p>
<table cellspacing="0" cellpadding="0" style="width: 100%">
<tr style="vertical-align: top">
<td style="width: 5%; font: 12pt Times New Roman, Times, Serif"><font style="font-size: 8pt"><b><i>(a)</i></b></font></td>
<td style="width: 95%; font: 12pt Times New Roman, Times, Serif; text-align: justify"><font style="font-size: 8pt"><b><i>Declaration of Dividends (common stock): </i></b>On July 6, 2016, the Company declared a dividend for the second quarter ended June 30, 2016, of $0.29 per share on our common stock, payable on August 17, 2016, to stockholders of record on August 3, 2016.</font></td></tr>
</table>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 3pt 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="width: 100%">
<tr style="vertical-align: top">
<td style="width: 5%; font: 12pt Times New Roman, Times, Serif"><font style="font-size: 8pt"><b><i>(b)</i></b></font></td>
<td style="width: 95%; font: 12pt Times New Roman, Times, Serif; 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> On July 6, 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 July 15, 2016, to holders of record on July 14, 2016.</font></td></tr>
</table>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 3pt 0"> </p>
<table cellspacing="0" cellpadding="0" style="width: 100%">
<tr style="vertical-align: top">
<td style="width: 5%; font: 12pt Times New Roman, Times, Serif"><font style="font-size: 8pt"><b><i>(c)</i></b></font></td>
<td style="width: 95%; font: 12pt Times New Roman, Times, Serif; text-align: justify"><font style="font-size: 8pt"><b><i> Sale and leaseback transaction:</i></b> On July 6, 2016 and July 15, 2016, the Company re-financed the then outstanding balance of the loan relating to<i> MSC Athens </i>and <i>MSC Athos</i> (Note 10.B.7), under a seven-year sale and leaseback transaction. Under the sale and leaseback transaction, the vessels<i> MSC Athens </i>and <i>MSC Athos</i> were chartered back to the Company and continued their time charter with their current time charterer. The total capital lease obligation at the inception of the lease transaction amounts to $151,848, in aggregate.</font></td></tr>
</table>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 3pt 0"> </p>
<table cellspacing="0" cellpadding="0" style="width: 100%">
<tr style="vertical-align: top">
<td style="width: 5%; font: 12pt Times New Roman, Times, Serif"><font style="font-size: 8pt"><b><i>(d)</i></b></font></td>
<td style="width: 95%; font: 12pt Times New Roman, Times, Serif; text-align: justify"><font style="font-size: 8pt"><b><i> Swap termination:</i></b> On July 6, 2016 and July 15, 2016, following the sale and leaseback transaction described in (c) above, the Company paid in aggregate the amount of $10,697 and terminated an interest rate swap (Note 18(a)). Consequently, the outstanding liability as at June 30, 2016 has been classified in Fair value of derivatives, current portion in the in the 2016 accompanying consolidated balance sheet.</font></td></tr>
</table>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 3pt 0"> </p>
<table cellspacing="0" cellpadding="0" style="width: 100%">
<tr style="vertical-align: top">
<td style="width: 5%; font: 12pt Times New Roman, Times, Serif"><font style="font-size: 8pt"><b><i>(e)</i></b></font></td>
<td style="width: 95%; font: 12pt Times New Roman, Times, Serif; text-align: justify"><font style="font-size: 8pt"><b><i>Vessel
sale: </i></b>On July 25, 2016, the Company contracted to sell for scrap the vessel <i>Karmen</i> at a sale price $3,953. The
sale is expected to result in a loss of approximately $4.2 million. The vessel was delivered to her scrap buyers on August
5, 2016.</font></td></tr>
</table>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 3pt 0"> </p>
<table cellspacing="0" cellpadding="0" style="width: 100%">
<tr style="vertical-align: top">
<td style="width: 5%; font: 12pt Times New Roman, Times, Serif"><font style="font-size: 8pt"><b><i>(f)</i></b></font></td>
<td style="width: 95%; font: 12pt Times New Roman, Times, Serif; text-align: justify"><font style="font-size: 8pt"><b><i>Equity method investments: </i></b></font>
<p style="font: 8pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt">On July 27, 2016, the Company participated with a 25%
interest in the equity of Ainsley Maritime Co. and Ambrose Maritime Co. by contributing the amount of $4,332, in aggregate, relating
to the pre-delivery installments of the shipyard for Hulls NCP0115 and NCP0116. On August 3, 2016, the Company participated with a 40% interest in the equity of Beardmore Maritime Co. by contributing the amount of $4,009, in aggregate, relating to the fifth installment of the shipyard for Hull No. 2123 and the second installment of the upfront fee.</p>
<font style="font-size: 8pt"><b><i></i></b></font></td></tr>
</table>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 3pt 0"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 3pt 0"> </p>
10000000
75697600
<p style="font: 8pt Times New Roman, Times, Serif; margin: 3pt 0; text-align: justify">In January 2016, the FASB issued ASU No.
2016-01—<i>Financial Instruments – Overall (Subtopic 825-10) </i>which includes the requirement for all equity investments
to be measured at fair value with changes in the fair value recognized through net income (other than those accounted for under
equity method of accounting or those that result in consolidation of the investee). This update is effective for all entities for
fiscal years beginning after December 15, 2017 and interim periods within those fiscal years. Early adoption is not 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: 3pt 0">In March 2016, the FASB issued ASU No. 2016-07—<i>Investments—Equity
Method and Joint Ventures (Topic 323)</i> to simplify the accounting for equity method investments which eliminates the requirement
in Topic 323 that an entity retroactively adopt the equity method of accounting if an investment qualifies for use of the equity
method as a result of an increase in the level of ownership or degree of influence. The amendments require that the equity method
investor add the cost of acquiring the additional interest in the investee to the current basis of the investor’s previously
held interest and adopt the equity method of accounting as of the date the investment becomes qualified for equity method accounting.
This update is effective for all entities for fiscal years beginning after December 15, 2016 and interim periods within those
fiscal years. 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 early adoption.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 3pt 0; text-align: justify">In March 2016, the FASB issued ASU 2016-08,
<i>Revenue from Contracts with Customers: Principal versus Agent Considerations (Reporting Revenue Gross versus Net)</i>, which
clarifies the guidance in ASU 2014-09 and has the same effective date as the original standard. 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), 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: 3pt 0; text-align: justify">In March 2016, the FASB issued ASU 2016-09,
<i>Compensation — Stock Compensation: Improvements to Employee Share-Based Payment Accounting </i>which is intended to simplify
several areas of accounting for share-based compensation arrangements, including the income tax impact, classification on the statement
of cash flows and forfeitures. This standard is effective for public entities with annual periods beginning after December 15,
2016, and interim periods within those annual periods. Early adoption is permitted in any interim or annual period.  The Company
believes that the implementation of this update will not have any material impact on its financial statements and has not elected
early adoption.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 3pt 0">In June 2016, the FASB issued ASU 2016-13– <i>Financial
Instruments – Credit Losses</i> (Topic 326): <i>Measurement of Credit Losses on Financial Instruments</i>. ASU 2016-13 amends
guidance on reporting credit losses for assets held at amortized cost basis and available for sale debt securities.  For
public entities, the amendments of this Update are effective for fiscal years beginning after December 15, 2019, including interim
periods within those fiscal years.  Early application is permitted. Management is in the process of assessing the impact
of the amendment of this Update on the Company's consolidated financial position and performance.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 3pt 0; text-align: justify"><b><i>(a) 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. Previous guidance
generally required 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. Upon adoption, an entity must apply
the new guidance retrospectively to all prior periods presented in the financial statements.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 3pt 0; text-align: justify">On January 1, 2016, the Company adopted
ASU No. 2015-03 <i>Interest – Imputation of Interest</i> effective for the financial statements for the fiscal year ending
December 31, 2016 and interim periods within this fiscal year and thus presents deferred financing costs, net of accumulated amortization,
as a reduction of long-term debt and capital lease obligation. In order to conform with the current period presentation, the Company
has reduced Deferred charges, net by $6,006 and has decreased the amount of the related current and non-current obligations by
$1,658 and $4,348, respectively on the consolidated balance sheet as of December 31, 2015 (see Notes 10 and 11). This reclassification
has no impact on the Company's results of operations, cash flows and net assets for any period.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 3pt 0; text-align: justify"><b><i>(b) </i></b>On January 1, 2016 the
Company changed the presentation of interest accrued and realized on non-hedging derivative instruments and reclassified such from
the Interest and Finance costs  line item to Gain / (Loss) on derivative instruments, net on the consolidated statements of
income. Comparative figures have been recast to reflect this change in presentation.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 3pt 0; text-align: justify"><b><i>(c) </i></b>On January 1, 2016, the
Company adopted<b><i> </i></b>ASU No. 2015-02 <i>Consolidation (Topic 810), Amendments to the Consolidation Analysis</i> effective
for the fiscal year ending December 31, 2016 and interim periods within this fiscal year. The adoption of this guidance had no
impact on the Company's results of operations, cash flows and net assets for any period.</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-size: 12pt"> </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 colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2016</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 1%; font-weight: bold; text-align: left"> </td><td style="width: 26%; font-weight: bold; text-align: left"><font style="font-size: 8pt"><b>A</b></font></td><td style="width: 1%; font-weight: bold; text-align: left"> </td><td style="width: 8%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 26%; text-align: right">25</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: 26%; text-align: right">27</td><td style="width: 1%; text-align: left">%</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: left"><font style="font-size: 8pt"><b>B</b></font></td><td style="font-weight: bold; text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">31</td><td style="text-align: left">%</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">30</td><td style="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>C</b></font></td><td style="font-weight: bold; text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">13</td><td style="text-align: left">%</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">13</td><td style="text-align: left">%</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<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: left"><font style="font-size: 8pt"><b>D</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">18</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</td><td style="padding-bottom: 1pt; text-align: left">%</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<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: left"><font style="font-size: 8pt"><b>Total </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">87</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">88</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">%</td></tr>
</table>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
<tr>
<td style="vertical-align: bottom; padding-bottom: 1.5pt; text-align: justify"> </td>
<td style="vertical-align: bottom; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="vertical-align: bottom; border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 8pt"><b>Vessel Cost</b></font></td>
<td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 1.5pt"> </td>
<td style="vertical-align: bottom; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid">
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Accumulated</b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Depreciation</b></p></td>
<td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 1.5pt"> </td>
<td style="vertical-align: bottom; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid">
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Net Book</b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Value</b></p></td>
<td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 67%; padding-bottom: 1.5pt; text-align: justify"><font style="font-size: 8pt"><b>Balance, December 31, 2015</b></font></td>
<td style="width: 1%; padding-bottom: 1.5pt"> </td>
<td style="width: 1%; border-bottom: black 1.5pt solid"> </td>
<td style="width: 8%; border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 8pt"><b>2,950,042</b></font></td>
<td nowrap="nowrap" style="width: 1%; padding-bottom: 1.5pt"> </td>
<td style="width: 1%; padding-bottom: 1.5pt"> </td>
<td style="width: 1%; border-bottom: black 1.5pt solid"> </td>
<td style="width: 8%; border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 8pt"><b>(945,392</b></font></td>
<td nowrap="nowrap" style="width: 1%; padding-bottom: 1.5pt"><font style="font-size: 8pt"><b>)</b></font></td>
<td style="width: 1%; padding-bottom: 1.5pt"> </td>
<td style="width: 1%; border-bottom: black 1.5pt solid"> </td>
<td style="width: 8%; border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 8pt"><b>2,004,650</b></font></td>
<td nowrap="nowrap" style="width: 1%; padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="text-align: justify"><font style="font-size: 8pt">Depreciation</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt"><b>-</b></font></td>
<td nowrap="nowrap"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">(46,748</font></td>
<td nowrap="nowrap"><font style="font-size: 8pt">)</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">(46,748</font></td>
<td nowrap="nowrap"><font style="font-size: 8pt">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 1.5pt; text-align: justify"><font style="font-size: 8pt">Other vessels’ costs</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 8pt">2,563</font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 8pt">-</font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 8pt">2,563</font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 3pt; text-align: justify"><font style="font-size: 8pt"><b>Balance, June 30, 2016</b></font></td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 8pt"><b>2,952,605</b></font></td>
<td nowrap="nowrap" style="padding-bottom: 3pt"> </td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 8pt"><b>(992,140</b></font></td>
<td nowrap="nowrap" style="padding-bottom: 3pt"><font style="font-size: 8pt"><b>)</b></font></td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 8pt"><b>1,960,465</b></font></td>
<td nowrap="nowrap" style="padding-bottom: 3pt"> </td></tr>
</table>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid">
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Dry-docking</b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>and Special</b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Survey Costs</b></p></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 89%; padding-bottom: 1.5pt; text-align: justify"><font style="font-size: 8pt"><b>Balance, December 31, 2015</b></font></td>
<td style="width: 1%; padding-bottom: 1.5pt"> </td>
<td style="width: 1%; border-bottom: black 1.5pt solid"> </td>
<td style="width: 8%; border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 8pt"><b>22,809</b></font></td>
<td nowrap="nowrap" style="width: 1%; padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="text-align: justify"><font style="font-size: 8pt">Additions</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">5,868</font></td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 1.5pt; text-align: justify"><font style="font-size: 8pt">Amortization</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 8pt">(3,940</font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"><font style="font-size: 8pt">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 3pt; text-align: justify"><font style="font-size: 8pt"><b>Balance, June 30, 2016</b></font></td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 8pt"><b>24,737</b></font></td>
<td nowrap="nowrap" style="padding-bottom: 3pt"> </td></tr>
</table>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
<tr>
<td> </td>
<td style="text-align: justify"> </td>
<td style="vertical-align: bottom"> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 8pt"><b>Participation %</b></font></td>
<td nowrap="nowrap" style="vertical-align: bottom"> </td>
<td style="text-align: center"><font style="font-size: 8pt"><b>Date Established</b></font></td></tr>
<tr>
<td style="vertical-align: bottom; border-bottom: black 1.5pt solid"><font style="font-size: 8pt"><b>Entity</b></font></td>
<td style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 8pt"><b>Vessel/Hull</b></font></td>
<td style="vertical-align: bottom; border-bottom: black 1.5pt solid"> </td>
<td colspan="2" style="vertical-align: bottom; border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 8pt"><b>June 30, 2016</b></font></td>
<td nowrap="nowrap" style="vertical-align: bottom; border-bottom: black 1.5pt solid"> </td>
<td style="vertical-align: bottom; border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 8pt"><b>/Acquired</b></font></td></tr>
<tr style="background-color: #CCEEFF">
<td style="width: 30%; text-align: justify"><font style="font-size: 8pt">Steadman Maritime Co.</font></td>
<td style="width: 29%; text-align: center"><font style="font-size: 8pt"><i>Ensenada Express</i></font></td>
<td style="vertical-align: bottom; width: 1%"> </td>
<td style="vertical-align: bottom; width: 1%"> </td>
<td style="vertical-align: bottom; width: 9%; text-align: right"><font style="font-size: 8pt">49</font></td>
<td nowrap="nowrap" style="vertical-align: bottom; width: 1%"><font style="font-size: 8pt">%</font></td>
<td style="width: 29%; text-align: center"><font style="font-size: 8pt">July 1, 2013</font></td></tr>
<tr style="background-color: white">
<td style="text-align: justify"><font style="font-size: 8pt">Marchant Maritime Co.</font></td>
<td style="text-align: center"><font style="font-size: 8pt"><i>Padma</i></font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">49</font></td>
<td nowrap="nowrap" style="vertical-align: bottom"><font style="font-size: 8pt">%</font></td>
<td style="text-align: center"><font style="font-size: 8pt">July 8, 2013</font></td></tr>
<tr style="background-color: #CCEEFF">
<td style="text-align: justify"><font style="font-size: 8pt">Horton Maritime Co.</font></td>
<td style="text-align: center"><font style="font-size: 8pt"><i>Petalidi</i></font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">49</font></td>
<td nowrap="nowrap" style="vertical-align: bottom"><font style="font-size: 8pt">%</font></td>
<td style="text-align: center"><font style="font-size: 8pt">June 26, 2013</font></td></tr>
<tr style="background-color: white">
<td style="text-align: justify"><font style="font-size: 8pt">Smales Maritime Co.</font></td>
<td style="text-align: center"><font style="font-size: 8pt"><i>Elafonisos</i></font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">49</font></td>
<td nowrap="nowrap" style="vertical-align: bottom"><font style="font-size: 8pt">%</font></td>
<td style="text-align: center"><font style="font-size: 8pt">June 6, 2013</font></td></tr>
<tr style="background-color: #CCEEFF">
<td style="text-align: justify"><font style="font-size: 8pt">Geyer Maritime Co.</font></td>
<td style="text-align: center"><font style="font-size: 8pt"><i>Arkadia</i></font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">49</font></td>
<td nowrap="nowrap" style="vertical-align: bottom"><font style="font-size: 8pt">%</font></td>
<td style="text-align: center"><font style="font-size: 8pt">May 18, 2015</font></td></tr>
<tr style="background-color: white">
<td style="text-align: justify"><font style="font-size: 8pt">Goodway Maritime Co.</font></td>
<td style="text-align: center"><font style="font-size: 8pt"><i>Monemvasia</i></font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">49</font></td>
<td nowrap="nowrap" style="vertical-align: bottom"><font style="font-size: 8pt">%</font></td>
<td style="text-align: center"><font style="font-size: 8pt">September 22, 2015</font></td></tr>
<tr style="background-color: #CCEEFF">
<td style="text-align: justify"><font style="font-size: 8pt">Kemp Maritime Co.</font></td>
<td style="text-align: center"><font style="font-size: 8pt">Hull NCP0113</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">49</font></td>
<td nowrap="nowrap" style="vertical-align: bottom"><font style="font-size: 8pt">%</font></td>
<td style="text-align: center"><font style="font-size: 8pt">June 6, 2013</font></td></tr>
<tr style="background-color: white">
<td style="text-align: justify"><font style="font-size: 8pt">Hyde Maritime Co.</font></td>
<td style="text-align: center"><font style="font-size: 8pt">Hull NCP0114</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">49</font></td>
<td nowrap="nowrap" style="vertical-align: bottom"><font style="font-size: 8pt">%</font></td>
<td style="text-align: center"><font style="font-size: 8pt">June 6, 2013</font></td></tr>
<tr style="background-color: #CCEEFF">
<td style="text-align: justify"><font style="font-size: 8pt">Skerrett Maritime Co.</font></td>
<td style="text-align: center"><font style="font-size: 8pt">Hull NCP0152</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">49</font></td>
<td nowrap="nowrap" style="vertical-align: bottom"><font style="font-size: 8pt">%</font></td>
<td style="text-align: center"><font style="font-size: 8pt">December 23, 2013</font></td></tr>
<tr style="background-color: white">
<td style="text-align: justify"><font style="font-size: 8pt">Ainsley Maritime Co.</font></td>
<td style="text-align: center"><font style="font-size: 8pt">Hull NCP0115</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">25</font></td>
<td nowrap="nowrap" style="vertical-align: bottom"><font style="font-size: 8pt">%</font></td>
<td style="text-align: center"><font style="font-size: 8pt">June 25, 2013</font></td></tr>
<tr style="background-color: #CCEEFF">
<td style="text-align: justify"><font style="font-size: 8pt">Ambrose Maritime Co.</font></td>
<td style="text-align: center"><font style="font-size: 8pt">Hull NCP0116</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">25</font></td>
<td nowrap="nowrap" style="vertical-align: bottom"><font style="font-size: 8pt">%</font></td>
<td style="text-align: center"><font style="font-size: 8pt">June 25, 2013</font></td></tr>
<tr style="background-color: white">
<td style="text-align: justify"><font style="font-size: 8pt">Benedict Maritime Co.</font></td>
<td style="text-align: center"><font style="font-size: 8pt"><i> Triton</i></font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">40</font></td>
<td nowrap="nowrap" style="vertical-align: bottom"><font style="font-size: 8pt">%</font></td>
<td style="text-align: center"><font style="font-size: 8pt">October 16, 2013</font></td></tr>
<tr style="background-color: #CCEEFF">
<td style="text-align: justify"><font style="font-size: 8pt">Bertrand Maritime Co.</font></td>
<td style="text-align: center"><font style="font-size: 8pt"><i>Titan</i></font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">40</font></td>
<td nowrap="nowrap" style="vertical-align: bottom"><font style="font-size: 8pt">%</font></td>
<td style="text-align: center"><font style="font-size: 8pt">October 16, 2013</font></td></tr>
<tr style="background-color: white">
<td style="text-align: justify"><font style="font-size: 8pt">Beardmore Maritime Co.</font></td>
<td style="text-align: center"><font style="font-size: 8pt">Hull HN2123</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">40</font></td>
<td nowrap="nowrap" style="vertical-align: bottom"><font style="font-size: 8pt">%</font></td>
<td style="text-align: center"><font style="font-size: 8pt">December 23, 2013</font></td></tr>
<tr style="background-color: #CCEEFF">
<td style="text-align: justify"><font style="font-size: 8pt">Schofield Maritime Co.</font></td>
<td style="text-align: center"><font style="font-size: 8pt">Hull HN2124</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">40</font></td>
<td nowrap="nowrap" style="vertical-align: bottom"><font style="font-size: 8pt">%</font></td>
<td style="text-align: center"><font style="font-size: 8pt">December 23, 2013</font></td></tr>
<tr style="background-color: white">
<td style="text-align: justify"><font style="font-size: 8pt">Fairbank Maritime Co.</font></td>
<td style="text-align: center"><font style="font-size: 8pt">Hull HN2125</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">40</font></td>
<td nowrap="nowrap" style="vertical-align: bottom"><font style="font-size: 8pt">%</font></td>
<td style="text-align: center"><font style="font-size: 8pt">December 23, 2013</font></td></tr>
<tr style="background-color: #CCEEFF">
<td style="text-align: justify"><font style="font-size: 8pt">Platt Maritime Co.</font></td>
<td style="text-align: center"><font style="font-size: 8pt">Hull YZJ1206</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">49</font></td>
<td nowrap="nowrap" style="vertical-align: bottom"><font style="font-size: 8pt">%</font></td>
<td style="text-align: center"><font style="font-size: 8pt">May 18, 2015</font></td></tr>
<tr style="background-color: white">
<td style="text-align: justify"><font style="font-size: 8pt">Sykes Maritime Co.</font></td>
<td style="text-align: center"><font style="font-size: 8pt">Hull YZJ1207</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">49</font></td>
<td nowrap="nowrap" style="vertical-align: bottom"><font style="font-size: 8pt">%</font></td>
<td style="text-align: center"><font style="font-size: 8pt">May 18, 2015</font></td></tr>
<tr style="background-color: #CCEEFF">
<td style="text-align: justify"><font style="font-size: 8pt">Connell Maritime Co.</font></td>
<td style="text-align: center"><font style="font-size: 8pt">n/a</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">40</font></td>
<td nowrap="nowrap" style="vertical-align: bottom"><font style="font-size: 8pt">%</font></td>
<td style="text-align: center"><font style="font-size: 8pt">December 18, 2013</font></td></tr>
</table>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
<tr>
<td style="vertical-align: bottom; padding-bottom: 1.5pt"> </td>
<td style="vertical-align: bottom; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="vertical-align: bottom; border-bottom: black 1.5pt solid">
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>December 31, </b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>2015</b></p></td>
<td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 1.5pt"> </td>
<td style="vertical-align: bottom; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="vertical-align: top; border-bottom: black 1.5pt solid">
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>June 30, </b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>2016</b></p></td>
<td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 78%; text-align: justify"><font style="font-size: 8pt">Non-current assets</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 8%; text-align: right"><font style="font-size: 8pt">290,805</font></td>
<td nowrap="nowrap" style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 8%; text-align: right"><font style="font-size: 8pt">533,407</font></td>
<td nowrap="nowrap" style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1.5pt; text-align: justify"><font style="font-size: 8pt">Current assets</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 8pt">11,969</font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 8pt">16,189</font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 1.5pt; text-align: justify"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 8pt">302,774</font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 8pt">549,596</font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="text-align: justify"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td nowrap="nowrap"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 1.5pt; text-align: justify"><font style="font-size: 8pt">Current liabilities</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 8pt">5,335</font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 8pt">18,875</font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td nowrap="nowrap"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="6" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 8pt"><b>Six-month periods ended June 30,</b></font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td></tr>
<tr style="background-color: white">
<td style="vertical-align: bottom; padding-bottom: 1.5pt"> </td>
<td style="vertical-align: bottom; padding-bottom: 1.5pt"> </td>
<td style="vertical-align: bottom; border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 8pt"><b>2015</b></font></td>
<td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 1.5pt"> </td>
<td style="vertical-align: bottom; padding-bottom: 1.5pt"> </td>
<td style="vertical-align: bottom; border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 8pt"><b>2016</b></font></td>
<td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 1.5pt; text-align: justify"><font style="font-size: 8pt">Voyage revenue</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 8pt">7,252</font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 8pt">10,333</font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1.5pt; text-align: justify"><font style="font-size: 8pt"><b>Net loss</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 8pt"><b>(454</b></font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"><font style="font-size: 8pt"><b>)</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 8pt"><b>(966</b></font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"><font style="font-size: 8pt"><b>)</b></font></td></tr>
</table>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
<tr>
<td style="vertical-align: bottom; padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"><font style="font-size: 8pt"><b>Borrower(s)</b></font></td>
<td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 1.5pt"> </td>
<td style="vertical-align: bottom; padding-bottom: 1.5pt"> </td>
<td colspan="4" style="vertical-align: bottom; padding-bottom: 1.5pt"> </td>
<td style="vertical-align: bottom; padding-bottom: 1.5pt"> </td>
<td style="vertical-align: bottom; border-bottom: black 1.5pt solid"> </td>
<td style="vertical-align: bottom; border-bottom: black 1.5pt solid">
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>December 31, </b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>2015</b></p></td>
<td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 1.5pt"> </td>
<td style="vertical-align: bottom; padding-bottom: 1.5pt"> </td>
<td style="vertical-align: bottom; border-bottom: black 1.5pt solid"> </td>
<td style="vertical-align: bottom; border-bottom: black 1.5pt solid">
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>June 30, </b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>2016 </b></p></td>
<td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 1.5pt"> </td></tr>
<tr>
<td style="vertical-align: bottom; padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"><font style="font-size: 8pt">1.</font></td>
<td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 1.5pt"> </td>
<td style="vertical-align: bottom; padding-bottom: 1.5pt"> </td>
<td colspan="4" style="vertical-align: bottom; text-align: justify"><font style="font-size: 8pt"><b>Credit Facility</b></font></td>
<td style="vertical-align: bottom; padding-bottom: 1.5pt"> </td>
<td style="vertical-align: bottom; border-bottom: black 1.5pt solid"> </td>
<td style="vertical-align: bottom; border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 8pt">495,993</font></td>
<td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 1.5pt"> </td>
<td style="vertical-align: bottom; padding-bottom: 1.5pt"> </td>
<td style="vertical-align: bottom; border-bottom: black 1.5pt solid"> </td>
<td style="vertical-align: bottom; border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 8pt">451,048</font></td>
<td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 1.5pt"> </td></tr>
<tr style="background-color: white">
<td style="vertical-align: bottom"> </td>
<td><font style="font-size: 8pt">2.</font></td>
<td nowrap="nowrap" style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td colspan="4" style="vertical-align: bottom; text-align: justify"><font style="font-size: 8pt"><b>Term Loans:</b></font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"> </td>
<td nowrap="nowrap" style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"> </td>
<td nowrap="nowrap" style="vertical-align: bottom"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: bottom; width: 1%"> </td>
<td style="width: 9%"> </td>
<td nowrap="nowrap" style="vertical-align: bottom; width: 1%"> </td>
<td style="vertical-align: bottom; width: 1%"> </td>
<td style="vertical-align: bottom; width: 1%"> </td>
<td style="vertical-align: bottom; width: 9%; text-align: right"><font style="font-size: 8pt">1.</font></td>
<td nowrap="nowrap" style="vertical-align: bottom; width: 1%"> </td>
<td style="vertical-align: bottom; width: 53%; text-align: justify"><font style="font-size: 8pt">Costis Maritime Corporation and Christos Maritime Corporation</font></td>
<td style="vertical-align: bottom; width: 1%"> </td>
<td style="vertical-align: bottom; width: 1%"> </td>
<td style="vertical-align: bottom; width: 9%; text-align: right"><font style="font-size: 8pt">82,500</font></td>
<td nowrap="nowrap" style="vertical-align: bottom; width: 1%"> </td>
<td style="vertical-align: bottom; width: 1%"> </td>
<td style="vertical-align: bottom; width: 1%"> </td>
<td style="vertical-align: bottom; width: 9%; text-align: right"><font style="font-size: 8pt">78,000</font></td>
<td nowrap="nowrap" style="vertical-align: bottom; width: 1%"> </td></tr>
<tr style="background-color: white">
<td style="vertical-align: bottom"> </td>
<td> </td>
<td nowrap="nowrap" style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">2.</font></td>
<td nowrap="nowrap" style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: justify"><font style="font-size: 8pt">Mas Shipping Co.</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">30,625</font></td>
<td nowrap="nowrap" style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">26,500</font></td>
<td nowrap="nowrap" style="vertical-align: bottom"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: bottom"> </td>
<td> </td>
<td nowrap="nowrap" style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">3.</font></td>
<td nowrap="nowrap" style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: justify"><font style="font-size: 8pt">Montes Shipping Co. and Kelsen Shipping Co.</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">66,000</font></td>
<td nowrap="nowrap" style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">60,000</font></td>
<td nowrap="nowrap" style="vertical-align: bottom"> </td></tr>
<tr style="background-color: white">
<td style="vertical-align: bottom"> </td>
<td> </td>
<td nowrap="nowrap" style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">4.</font></td>
<td nowrap="nowrap" style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: justify"><font style="font-size: 8pt">Capetanissa Maritime Corporation</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">45,000</font></td>
<td nowrap="nowrap" style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">42,500</font></td>
<td nowrap="nowrap" style="vertical-align: bottom"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: bottom"> </td>
<td> </td>
<td nowrap="nowrap" style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">5.</font></td>
<td nowrap="nowrap" style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: justify"><font style="font-size: 8pt">Rena Maritime Corporation</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">42,500</font></td>
<td nowrap="nowrap" style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">40,000</font></td>
<td nowrap="nowrap" style="vertical-align: bottom"> </td></tr>
<tr style="background-color: white">
<td style="vertical-align: bottom"> </td>
<td> </td>
<td nowrap="nowrap" style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">6.</font></td>
<td nowrap="nowrap" style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: justify"><font style="font-size: 8pt">Costamare Inc.</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">60,463</font></td>
<td nowrap="nowrap" style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">55,388</font></td>
<td nowrap="nowrap" style="vertical-align: bottom"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: bottom"> </td>
<td> </td>
<td nowrap="nowrap" style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">7.</font></td>
<td nowrap="nowrap" style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: justify"><font style="font-size: 8pt">Costamare Inc.</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">111,417</font></td>
<td nowrap="nowrap" style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">106,960</font></td>
<td nowrap="nowrap" style="vertical-align: bottom"> </td></tr>
<tr style="background-color: white">
<td style="vertical-align: bottom"> </td>
<td> </td>
<td nowrap="nowrap" style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">8.</font></td>
<td nowrap="nowrap" style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: justify"><font style="font-size: 8pt">Undine Shipping Co., Quentin Shipping Co. and Sander Shipping Co.</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">193,545</font></td>
<td nowrap="nowrap" style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">185,904</font></td>
<td nowrap="nowrap" style="vertical-align: bottom"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: bottom"> </td>
<td> </td>
<td nowrap="nowrap" style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">9.</font></td>
<td nowrap="nowrap" style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: justify"><font style="font-size: 8pt">Raymond Shipping Co. and Terance Shipping Co.</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">126,878</font></td>
<td nowrap="nowrap" style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">121,421</font></td>
<td nowrap="nowrap" style="vertical-align: bottom"> </td></tr>
<tr style="background-color: white">
<td style="vertical-align: bottom"> </td>
<td> </td>
<td nowrap="nowrap" style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">10.</font></td>
<td nowrap="nowrap" style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: justify"><font style="font-size: 8pt">Costamare Inc.</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">68,170</font></td>
<td nowrap="nowrap" style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">62,740</font></td>
<td nowrap="nowrap" style="vertical-align: bottom"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: bottom; padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 1.5pt"> </td>
<td style="vertical-align: bottom; padding-bottom: 1.5pt"> </td>
<td style="vertical-align: bottom; padding-bottom: 1.5pt"> </td>
<td style="vertical-align: bottom; padding-bottom: 1.5pt; text-align: right"><font style="font-size: 8pt">11.</font></td>
<td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 1.5pt"> </td>
<td style="vertical-align: bottom; padding-bottom: 1.5pt; text-align: justify"><font style="font-size: 8pt">Uriza Shipping S.A.</font></td>
<td style="vertical-align: bottom; padding-bottom: 1.5pt"> </td>
<td style="vertical-align: bottom; border-bottom: black 1.5pt solid"> </td>
<td style="vertical-align: bottom; border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 8pt">-</font></td>
<td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 1.5pt"> </td>
<td style="vertical-align: bottom; padding-bottom: 1.5pt"> </td>
<td style="vertical-align: bottom; border-bottom: black 1.5pt solid"> </td>
<td style="vertical-align: bottom; border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 8pt">39,000</font></td>
<td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 1.5pt"> </td></tr>
<tr style="background-color: white">
<td style="vertical-align: bottom; padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 1.5pt"> </td>
<td style="vertical-align: bottom; padding-bottom: 1.5pt"> </td>
<td style="vertical-align: bottom; padding-bottom: 1.5pt"> </td>
<td style="vertical-align: bottom; padding-bottom: 1.5pt; text-align: right"> </td>
<td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 1.5pt"> </td>
<td style="vertical-align: bottom; padding-bottom: 1.5pt; text-align: justify"> </td>
<td style="vertical-align: bottom; padding-bottom: 1.5pt"> </td>
<td style="vertical-align: bottom; border-bottom: black 1.5pt solid"> </td>
<td style="vertical-align: bottom; border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 8pt">827,098</font></td>
<td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 1.5pt"> </td>
<td style="vertical-align: bottom; padding-bottom: 1.5pt"> </td>
<td style="vertical-align: bottom; border-bottom: black 1.5pt solid"> </td>
<td style="vertical-align: bottom; border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 8pt">818,413</font></td>
<td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 1.5pt"> </td></tr>
</table>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 3pt 0; text-align: justify; text-indent: 0.5in"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: bottom">
<td style="width: 78%; padding-bottom: 1.5pt"><font style="font-size: 8pt"><b>Total</b></font></td>
<td style="width: 1%; padding-bottom: 1.5pt"> </td>
<td style="width: 1%; border-bottom: black 1.5pt solid"> </td>
<td style="width: 8%; border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 8pt"><b>1,323,091</b></font></td>
<td nowrap="nowrap" style="width: 1%; padding-bottom: 1.5pt"> </td>
<td style="width: 1%; padding-bottom: 1.5pt"> </td>
<td style="width: 1%; border-bottom: black 1.5pt solid"> </td>
<td style="width: 8%; border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 8pt"><b>1,269,461</b></font></td>
<td nowrap="nowrap" style="width: 1%; padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 1.5pt; text-align: justify"><font style="font-size: 8pt"><b>Less: Deferred financing costs</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 8pt">(4,499</font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"><font style="font-size: 8pt">)</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 8pt">(4,409</font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"><font style="font-size: 8pt">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1.5pt; text-align: justify"><font style="font-size: 8pt"><b>Total long term debt, net</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 8pt">1,318,592</font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 8pt">1,265,052</font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="text-align: justify"><font style="font-size: 8pt"><b>Less: Long-term debt current portion</b></font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">(185,259</font></td>
<td nowrap="nowrap"><font style="font-size: 8pt">)</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">(189,592</font></td>
<td nowrap="nowrap"><font style="font-size: 8pt">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1.5pt; text-align: justify"><font style="font-size: 8pt"><b>Add: Deferred financing costs, current portion</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 8pt">1,431</font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 8pt">1,476</font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 3pt; text-align: justify"><font style="font-size: 8pt"><b>Total long term debt, non-current, net</b></font></td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 8pt">1,134,764</font></td>
<td nowrap="nowrap" style="padding-bottom: 3pt"> </td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 8pt">1,076,936</font></td>
<td nowrap="nowrap" style="padding-bottom: 3pt"> </td></tr>
</table>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 3pt 0; text-align: justify; text-indent: 0.5in"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt; text-align: justify"><font style="font-size: 8pt"> <b><u>Year ending December 31,</u></b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 8pt"><b>Amount</b></font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 89%; text-align: justify"><font style="font-size: 8pt">2016</font></td>
<td style="width: 1%; text-align: right"> </td>
<td style="width: 1%"> </td>
<td style="width: 8%; text-align: right"><font style="font-size: 8pt">90,339</font></td>
<td nowrap="nowrap" style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="text-align: justify"><font style="font-size: 8pt">2017</font></td>
<td style="text-align: right"> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">180,679</font></td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="text-align: justify"><font style="font-size: 8pt">2018</font></td>
<td style="text-align: right"> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">559,466</font></td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="text-align: justify"><font style="font-size: 8pt">2019</font></td>
<td style="text-align: right"> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">65,816</font></td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="text-align: justify"><font style="font-size: 8pt">2020</font></td>
<td style="text-align: right"> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">246,701</font></td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1.5pt; text-align: justify"><font style="font-size: 8pt">2021</font></td>
<td style="padding-bottom: 1.5pt; text-align: right"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 8pt">19,500</font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td> </td>
<td style="padding-bottom: 3pt; text-align: right"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 8pt"><b>1,162,501</b></font></td>
<td nowrap="nowrap" style="padding-bottom: 3pt"> </td></tr>
</table>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: bottom">
<td style="width: 89%; padding-bottom: 1.5pt; text-decoration: underline; text-align: justify"><font style="font-size: 8pt"><b><u>Balance, December 31, 2015</u></b></font></td>
<td style="width: 1%; padding-bottom: 1.5pt; text-align: right"> </td>
<td style="width: 1%"> </td>
<td style="width: 8%; text-align: right"><font style="font-size: 8pt"><b>4,499</b></font></td>
<td nowrap="nowrap" style="width: 1%; padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="text-align: justify"><font style="font-size: 8pt">Additions</font></td>
<td style="text-align: right"> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">682</font></td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1.5pt; text-align: justify"><font style="font-size: 8pt">Amortization</font></td>
<td style="padding-bottom: 1.5pt; text-align: right"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 8pt">(772</font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"><font style="font-size: 8pt">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 1.5pt; text-align: justify"><font style="font-size: 8pt"><b>Balance, June 30, 2016</b></font></td>
<td style="padding-bottom: 1.5pt; text-align: right"> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt"><b>4,409</b></font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1.5pt; text-align: justify"><font style="font-size: 8pt"><b>Less: Current portion of financing costs</b></font></td>
<td style="padding-bottom: 1.5pt; text-align: right"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 8pt">(1,476</font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"><font style="font-size: 8pt">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 3pt; text-align: justify"><font style="font-size: 8pt"><b>Financing costs, non-current portion</b></font></td>
<td style="padding-bottom: 3pt; text-align: right"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 8pt"><b>2,933</b></font></td>
<td nowrap="nowrap" style="padding-bottom: 3pt"> </td></tr>
</table>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
<tr>
<td style="vertical-align: top; padding-bottom: 1.5pt"> </td>
<td style="vertical-align: bottom; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="vertical-align: top; border-bottom: black 1.5pt solid">
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>December 31, </b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>2015</b></p></td>
<td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 1.5pt"> </td>
<td style="vertical-align: bottom; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="vertical-align: bottom; border-bottom: black 1.5pt solid">
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>June 30, </b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>2016</b></p></td>
<td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 1.5pt"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: top; width: 78%; text-align: justify"><font style="font-size: 8pt">Prepaid lease rentals</font></td>
<td style="vertical-align: bottom; width: 1%"> </td>
<td style="vertical-align: bottom; width: 1%"> </td>
<td style="vertical-align: bottom; width: 8%; text-align: right"><font style="font-size: 8pt">45,793</font></td>
<td nowrap="nowrap" style="vertical-align: bottom; width: 1%"> </td>
<td style="vertical-align: bottom; width: 1%"> </td>
<td style="vertical-align: bottom; width: 1%"> </td>
<td style="vertical-align: bottom; width: 8%; text-align: right"><font style="font-size: 8pt">40,811</font></td>
<td nowrap="nowrap" style="vertical-align: bottom; width: 1%"> </td></tr>
<tr style="background-color: white">
<td style="vertical-align: top; padding-bottom: 1.5pt; text-align: justify"><font style="font-size: 8pt">Less: Amortization of prepaid lease rentals</font></td>
<td style="vertical-align: bottom; padding-bottom: 1.5pt"> </td>
<td style="vertical-align: bottom; border-bottom: black 1.5pt solid"> </td>
<td style="vertical-align: bottom; border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 8pt">(4,982</font></td>
<td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 1.5pt"><font style="font-size: 8pt">)</font></td>
<td style="vertical-align: bottom; padding-bottom: 1.5pt"> </td>
<td style="vertical-align: bottom; border-bottom: black 1.5pt solid"> </td>
<td style="vertical-align: bottom; border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 8pt">(2,477</font></td>
<td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 1.5pt"><font style="font-size: 8pt">)</font></td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: top; text-align: justify"><font style="font-size: 8pt"><b>Prepaid lease rentals</b></font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt"><b>40,811</b></font></td>
<td nowrap="nowrap" style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt"><b>38,334</b></font></td>
<td nowrap="nowrap" style="vertical-align: bottom"> </td></tr>
<tr style="background-color: white">
<td style="vertical-align: top; padding-bottom: 1.5pt; text-align: justify"><font style="font-size: 8pt">Less: current portion</font></td>
<td style="vertical-align: bottom; padding-bottom: 1.5pt"> </td>
<td style="vertical-align: bottom; border-bottom: black 1.5pt solid"> </td>
<td style="vertical-align: bottom; border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 8pt">(4,982</font></td>
<td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 1.5pt"><font style="font-size: 8pt">)</font></td>
<td style="vertical-align: bottom; padding-bottom: 1.5pt"> </td>
<td style="vertical-align: bottom; border-bottom: black 1.5pt solid"> </td>
<td style="vertical-align: bottom; border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 8pt">(4,975</font></td>
<td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 1.5pt"><font style="font-size: 8pt">)</font></td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: top; padding-bottom: 3pt; text-align: justify"><font style="font-size: 8pt"><b>Non-current portion</b></font></td>
<td style="vertical-align: bottom; padding-bottom: 3pt"> </td>
<td style="vertical-align: bottom; border-bottom: black 2.25pt double"> </td>
<td style="vertical-align: bottom; border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 8pt"><b>35,829</b></font></td>
<td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 3pt"> </td>
<td style="vertical-align: bottom; padding-bottom: 3pt"> </td>
<td style="vertical-align: bottom; border-bottom: black 2.25pt double"> </td>
<td style="vertical-align: bottom; border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 8pt"><b>33,359</b></font></td>
<td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 3pt"> </td></tr>
</table>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
<tr>
<td style="vertical-align: top; padding-bottom: 1.5pt; text-decoration: underline; text-align: justify"><font style="font-size: 8pt"><b><u>Year ending December 31,</u></b></font></td>
<td style="vertical-align: bottom; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="vertical-align: top; border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 8pt"><b>Amount</b></font></td>
<td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 1.5pt"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: top; width: 89%; text-align: justify"><font style="font-size: 8pt">2016</font></td>
<td style="vertical-align: bottom; width: 1%"> </td>
<td style="vertical-align: bottom; width: 1%"> </td>
<td style="vertical-align: bottom; width: 8%; text-align: right"><font style="font-size: 8pt">15,419</font></td>
<td nowrap="nowrap" style="vertical-align: bottom; width: 1%"> </td></tr>
<tr style="background-color: white">
<td style="vertical-align: top; text-align: justify"><font style="font-size: 8pt">2017</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">30,698</font></td>
<td nowrap="nowrap" style="vertical-align: bottom"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: top; text-align: justify"><font style="font-size: 8pt">2018</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">30,698</font></td>
<td nowrap="nowrap" style="vertical-align: bottom"> </td></tr>
<tr style="background-color: white">
<td style="vertical-align: top; text-align: justify"><font style="font-size: 8pt">2019</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">30,699</font></td>
<td nowrap="nowrap" style="vertical-align: bottom"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: top; text-align: justify"><font style="font-size: 8pt">2020</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">30,783</font></td>
<td nowrap="nowrap" style="vertical-align: bottom"> </td></tr>
<tr style="background-color: white">
<td style="vertical-align: top; padding-bottom: 1.5pt; text-align: justify"><font style="font-size: 8pt">2021 and thereafter</font></td>
<td style="vertical-align: bottom; padding-bottom: 1.5pt"> </td>
<td style="vertical-align: bottom; border-bottom: black 1.5pt solid"> </td>
<td style="vertical-align: bottom; border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 8pt">176,771</font></td>
<td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 1.5pt"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: top; padding-bottom: 1.5pt; text-align: justify"><font style="font-size: 8pt"><b>Total</b></font></td>
<td style="vertical-align: bottom; padding-bottom: 1.5pt"> </td>
<td style="vertical-align: bottom; border-bottom: black 1.5pt solid"> </td>
<td style="vertical-align: bottom; border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 8pt"><b>315,068</b></font></td>
<td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 1.5pt"> </td></tr>
<tr style="background-color: white">
<td style="vertical-align: top; padding-bottom: 1.5pt; text-align: justify"><font style="font-size: 8pt">Less: Amount of interest</font></td>
<td style="vertical-align: bottom; padding-bottom: 1.5pt"> </td>
<td style="vertical-align: bottom; border-bottom: black 1.5pt solid"> </td>
<td style="vertical-align: bottom; border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 8pt">(88,569</font></td>
<td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 1.5pt"><font style="font-size: 8pt">)</font></td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: top; padding-bottom: 1.5pt; text-align: justify"><font style="font-size: 8pt"><b>Total lease payments</b></font></td>
<td style="vertical-align: bottom; padding-bottom: 1.5pt"> </td>
<td style="vertical-align: bottom; border-bottom: black 1.5pt solid"> </td>
<td style="vertical-align: bottom; border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 8pt"><b>226,499</b></font></td>
<td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 1.5pt"> </td></tr>
<tr style="background-color: white">
<td style="vertical-align: top; padding-bottom: 1.5pt; text-align: justify"><font style="font-size: 8pt"><b>Less: Financing costs, net</b></font></td>
<td style="vertical-align: bottom; padding-bottom: 1.5pt"> </td>
<td style="vertical-align: bottom; border-bottom: black 1.5pt solid"> </td>
<td style="vertical-align: bottom; border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 8pt"><b>(1,394</b></font></td>
<td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 1.5pt"><font style="font-size: 8pt"><b>)</b></font></td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: top; padding-bottom: 3pt; text-align: justify"><font style="font-size: 8pt"><b>Total lease payments, net</b></font></td>
<td style="vertical-align: bottom; padding-bottom: 3pt"> </td>
<td style="vertical-align: bottom; border-bottom: black 2.25pt double"> </td>
<td style="vertical-align: bottom; border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 8pt"><b>225,105</b></font></td>
<td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 3pt"> </td></tr>
</table>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
<tr style="background-color: #CCEEFF">
<td style="vertical-align: top; width: 89%; text-align: justify"><font style="font-size: 8pt">Capital lease obligation – current</font></td>
<td style="vertical-align: bottom; width: 1%"> </td>
<td style="vertical-align: bottom; width: 1%"> </td>
<td style="vertical-align: bottom; width: 8%; text-align: right"><font style="font-size: 8pt">15,013</font></td>
<td nowrap="nowrap" style="vertical-align: bottom; width: 1%"> </td></tr>
<tr style="background-color: white">
<td style="vertical-align: top; text-align: justify"><font style="font-size: 8pt">Less: current portion of financing costs</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">(223</font></td>
<td nowrap="nowrap" style="vertical-align: bottom"><font style="font-size: 8pt">)</font></td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: top; text-align: justify"><font style="font-size: 8pt">Capital lease obligation – non current</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">211,486</font></td>
<td nowrap="nowrap" style="vertical-align: bottom"> </td></tr>
<tr style="background-color: white">
<td style="vertical-align: top; padding-bottom: 1.5pt; text-align: justify"><font style="font-size: 8pt">Less: non-current portion of financing costs</font></td>
<td style="vertical-align: bottom; padding-bottom: 1.5pt"> </td>
<td style="vertical-align: bottom; border-bottom: black 1.5pt solid"> </td>
<td style="vertical-align: bottom; border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 8pt">(1,171</font></td>
<td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 1.5pt"><font style="font-size: 8pt">)</font></td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: top; padding-bottom: 3pt"> </td>
<td style="vertical-align: bottom; padding-bottom: 3pt"> </td>
<td style="vertical-align: bottom; border-bottom: black 2.25pt double"> </td>
<td style="vertical-align: bottom; border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 8pt"><b>225,105</b></font></td>
<td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 3pt"> </td></tr>
</table>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
<tr>
<td style="vertical-align: bottom; padding-bottom: 1.5pt; text-decoration: underline"><font style="font-size: 8pt"><b><u>Year ending December 31,</u></b></font></td>
<td style="vertical-align: bottom; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 8pt"><b>Amount</b></font></td>
<td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 89%; text-align: justify"><font style="font-size: 8pt">2016</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 8%; text-align: right"><font style="font-size: 8pt">(5,667</font></td>
<td nowrap="nowrap" style="width: 1%"><font style="font-size: 8pt">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="text-align: justify"><font style="font-size: 8pt">2017</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">(11,336</font></td>
<td nowrap="nowrap"><font style="font-size: 8pt">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="text-align: justify"><font style="font-size: 8pt">2018</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">(8,897</font></td>
<td nowrap="nowrap"><font style="font-size: 8pt">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="text-align: justify"><font style="font-size: 8pt">2019</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">(6,602</font></td>
<td nowrap="nowrap"><font style="font-size: 8pt">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 1.5pt; text-align: justify"><font style="font-size: 8pt">2020</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 8pt">(800</font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"><font style="font-size: 8pt">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 3pt; text-align: justify"> </td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 8pt"><b>(33,302</b></font></td>
<td nowrap="nowrap" style="padding-bottom: 3pt"><font style="font-size: 8pt"><b>)</b></font></td></tr>
</table>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt; text-align: justify"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid">
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>December 31, </b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>2015</b></p></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid">
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>June 30, </b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>2016</b></p></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 78%; text-align: justify"><font style="font-size: 8pt">Hires collected in advance</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 8%; text-align: right"><font style="font-size: 8pt">8,469</font></td>
<td nowrap="nowrap" style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 8%; text-align: right"><font style="font-size: 8pt">3,874</font></td>
<td nowrap="nowrap" style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1.5pt; text-align: justify"><font style="font-size: 8pt">Charter revenue resulting from varying charter rates</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 8pt">36,395</font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 8pt">34,149</font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="text-align: justify"><font style="font-size: 8pt"><b>Total</b></font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt"><b>44,864</b></font></td>
<td nowrap="nowrap"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt"><b>38,023</b></font></td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1.5pt; text-align: justify"><font style="font-size: 8pt"><b>Less current portion</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 8pt">(18,356</font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"><font style="font-size: 8pt">)</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 8pt">(15,618</font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"><font style="font-size: 8pt">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 3pt; text-align: justify"><font style="font-size: 8pt"><b>Non-current portion</b></font></td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 8pt"><b>26,508</b></font></td>
<td nowrap="nowrap" style="padding-bottom: 3pt"> </td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 8pt"><b>22,405</b></font></td>
<td nowrap="nowrap" style="padding-bottom: 3pt"> </td></tr>
</table>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt; text-align: justify"><font style="font-size: 8pt"><b>Year ending December 31,</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 8pt"><b>Amount</b></font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 89%; text-align: justify"><font style="font-size: 8pt">2016</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 8%; text-align: right"><font style="font-size: 8pt">220,755</font></td>
<td nowrap="nowrap" style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="text-align: justify"><font style="font-size: 8pt">2017</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">376,706</font></td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="text-align: justify"><font style="font-size: 8pt">2018</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">198,759</font></td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="text-align: justify"><font style="font-size: 8pt">2019</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">122,306</font></td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="text-align: justify"><font style="font-size: 8pt">2020</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">93,841</font></td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1.5pt; text-align: justify"><font style="font-size: 8pt">2021 and thereafter</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 8pt">217,011</font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 3pt; text-align: justify"> </td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 8pt"><b>1,229,378</b></font></td>
<td nowrap="nowrap" style="padding-bottom: 3pt"> </td></tr>
</table>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="6" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 8pt"><b>June 30,</b></font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 8pt"><b>2015</b></font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 8pt"><b>2016</b></font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 8pt"><b>Basic EPS</b></font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 8pt"><b>Basic EPS</b></font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 78%; text-align: justify"><font style="font-size: 8pt">Net income</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 8pt">$</font></td>
<td style="width: 8%; text-align: right"><font style="font-size: 8pt">70,613</font></td>
<td nowrap="nowrap" style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 8pt">$</font></td>
<td style="width: 8%; text-align: right"><font style="font-size: 8pt">72,038</font></td>
<td nowrap="nowrap" style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1.5pt; text-align: justify"><font style="font-size: 8pt">Less: paid and accrued earnings allocated to Preferred Stock</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 8pt">(7,313</font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"><font style="font-size: 8pt">)</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 8pt">(10,473</font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"><font style="font-size: 8pt">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 1.5pt; text-align: justify"><font style="font-size: 8pt">Net income available to common stockholders</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 8pt">63,300</font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 8pt">61,565</font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1.5pt; text-align: justify"><font style="font-size: 8pt">Weighted average number of common shares, basic and diluted</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 8pt">74,876,866</font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 8pt">75,474,844</font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 3pt; text-align: justify"><font style="font-size: 8pt">Earnings per common share, basic and diluted</font></td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 8pt">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 8pt">0.85</font></td>
<td nowrap="nowrap" style="padding-bottom: 3pt"> </td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 8pt">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 8pt">0.82</font></td>
<td nowrap="nowrap" style="padding-bottom: 3pt"> </td></tr>
</table>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="6" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 8pt"><b>Six-month periods ended June 30,</b></font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 8pt"><b>2015</b></font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 8pt"><b>2016</b></font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 78%; text-align: justify"><font style="font-size: 8pt">Interest expense</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 8%; text-align: right"><font style="font-size: 8pt">22,667</font></td>
<td nowrap="nowrap" style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 8%; text-align: right"><font style="font-size: 8pt">23,301</font></td>
<td nowrap="nowrap" style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="text-align: justify"><font style="font-size: 8pt">Swap effect</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">17,777</font></td>
<td nowrap="nowrap"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">11,489</font></td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="text-align: justify"><font style="font-size: 8pt">Amortization and write-off of financing costs</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">946</font></td>
<td nowrap="nowrap"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">885</font></td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="text-align: justify"><font style="font-size: 8pt">Commitment fees</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">349</font></td>
<td nowrap="nowrap"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">-</font></td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="text-align: justify"><font style="font-size: 8pt">Other financing costs</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">-</font></td>
<td nowrap="nowrap"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">866</font></td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1.5pt; text-align: justify"><font style="font-size: 8pt">Bank charges and other</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 8pt">131</font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 8pt">135</font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 3pt"> </td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 8pt"><b>41,870</b></font></td>
<td nowrap="nowrap" style="padding-bottom: 3pt"> </td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 8pt"><b>36,676</b></font></td>
<td nowrap="nowrap" style="padding-bottom: 3pt"> </td></tr>
</table>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
<tr>
<td colspan="17" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 8pt"><b>The Effect of Derivative Instruments for the six-month periods ended June 30, 2015 and 2016</b></font></td>
<td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td colspan="17" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 8pt"><b>Derivatives in ASC 815 Cash Flow Hedging Relationships</b></font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td></tr>
<tr>
<td style="vertical-align: bottom; padding-bottom: 1.5pt"> </td>
<td style="vertical-align: bottom; padding-bottom: 1.5pt"> </td>
<td colspan="6" style="vertical-align: bottom; border-bottom: black 1.5pt 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 nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 1.5pt"> </td>
<td style="vertical-align: bottom; border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 8pt"><b>Location of Gain / (Loss) Recognized in Income on Derivative (Ineffective Portion)</b></font></td>
<td style="vertical-align: bottom; padding-bottom: 1.5pt"> </td>
<td colspan="6" style="vertical-align: top; border-bottom: black 1.5pt 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>
<td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt; text-align: justify"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 8pt"><b>2015</b></font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 8pt"><b>2016</b></font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 8pt"><b>2015</b></font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 8pt"><b>2016</b></font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 26%; text-align: justify; text-indent: 3.15pt"><font style="font-size: 8pt">Interest rate swaps</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 9%; text-align: right"><font style="font-size: 8pt">(15,574</font></td>
<td nowrap="nowrap" style="width: 1%"><font style="font-size: 8pt">)</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 9%; text-align: right"><font style="font-size: 8pt">(14,550</font></td>
<td nowrap="nowrap" style="width: 1%"><font style="font-size: 8pt">)</font></td>
<td style="width: 26%"><font style="font-size: 8pt">Gain / (Loss) on derivative instruments, net</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 9%; text-align: right"><font style="font-size: 8pt">(60</font></td>
<td nowrap="nowrap" style="width: 1%"><font style="font-size: 8pt">)</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 9%; text-align: right"><font style="font-size: 8pt">-</font></td>
<td nowrap="nowrap" style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1.5pt; text-align: justify; text-indent: 3.15pt"><font style="font-size: 8pt">Reclassification to Interest and finance costs</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 8pt">17,777</font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 8pt">11,489</font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt; text-align: justify"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 8pt"><b>--</b></font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 8pt"><b>-</b></font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 3pt; text-align: justify; text-indent: 3.15pt"><font style="font-size: 8pt"><b>Total</b></font></td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 8pt"><b>2,203</b></font></td>
<td nowrap="nowrap" style="padding-bottom: 3pt"> </td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 8pt"><b>(3,061</b></font></td>
<td nowrap="nowrap" style="padding-bottom: 3pt"><font style="font-size: 8pt"><b>)</b></font></td>
<td style="padding-bottom: 3pt; text-align: justify"> </td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 8pt"><b>(60</b></font></td>
<td nowrap="nowrap" style="padding-bottom: 3pt"><font style="font-size: 8pt"><b>)</b></font></td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 8pt"><b>-</b></font></td>
<td nowrap="nowrap" style="padding-bottom: 3pt"> </td></tr>
</table>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: bottom">
<td colspan="9" style="border-bottom: black 1.5pt 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>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td></tr>
<tr>
<td style="vertical-align: bottom; padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid">
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in"><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="vertical-align: bottom; padding-bottom: 1.5pt"> </td>
<td colspan="6" style="vertical-align: bottom; border-bottom: black 1.5pt solid">
<p style="font: 8pt Times New Roman, Times, Serif; margin-top: 0; text-align: center; margin-bottom: 0">    <b>Amount of Gain / (Loss)
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>
<td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt; text-align: justify"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 8pt"><b>2015</b></font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 8pt"><b>2016</b></font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 40%"><font style="font-size: 8pt">Non hedging interest rate swaps</font></td>
<td style="width: 38%; text-align: center"><font style="font-size: 8pt">Gain / (Loss) on derivative instruments, net</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 8%; text-align: right"><font style="font-size: 8pt">3,591</font></td>
<td nowrap="nowrap" style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 8%; text-align: right"><font style="font-size: 8pt">(4,101</font></td>
<td nowrap="nowrap" style="width: 1%"><font style="font-size: 8pt">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font-size: 8pt">Ineffective portion of hedging interest rate swaps</font></td>
<td style="text-align: center"><font style="font-size: 8pt">Gain / (Loss) on derivative instruments, net</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">(60</font></td>
<td nowrap="nowrap"><font style="font-size: 8pt">)</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">-</font></td>
<td nowrap="nowrap"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: top; padding-bottom: 1.5pt"><font style="font-size: 8pt">Forward contracts</font></td>
<td style="vertical-align: bottom; padding-bottom: 1.5pt; text-align: center"><font style="font-size: 8pt">Gain / (Loss) on derivative instruments, net</font></td>
<td style="vertical-align: bottom; padding-bottom: 1.5pt"> </td>
<td style="vertical-align: bottom; border-bottom: black 1.5pt solid"> </td>
<td style="vertical-align: bottom; border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 8pt">519</font></td>
<td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 1.5pt"> </td>
<td style="vertical-align: bottom; padding-bottom: 1.5pt"> </td>
<td style="vertical-align: bottom; border-bottom: black 1.5pt solid"> </td>
<td style="vertical-align: bottom; border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 8pt">(158</font></td>
<td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 1.5pt"><font style="font-size: 8pt">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 3pt"><font style="font-size: 8pt"><b>Total</b></font></td>
<td style="padding-bottom: 3pt; text-align: justify"> </td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 8pt"><b>4,050</b></font></td>
<td nowrap="nowrap" style="padding-bottom: 3pt"> </td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 8pt"><b>(4,259</b></font></td>
<td nowrap="nowrap" style="padding-bottom: 3pt"><font style="font-size: 8pt"><b>)</b></font></td></tr>
</table>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt; text-align: justify"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid">
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>December 31,</b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>2015</b></p></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid">
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Quoted Prices in</b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Active Markets for</b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Identical Assets</b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>(Level 1)</b></p></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid">
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Significant</b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Other</b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Observable</b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Inputs</b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>(Level 2)</b></p></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid">
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Unobservable</b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Inputs</b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>(Level 3)</b></p></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font-size: 8pt"><b>Recurring measurements:</b></font></td>
<td> </td>
<td colspan="2"> </td>
<td nowrap="nowrap"> </td>
<td> </td>
<td colspan="2"> </td>
<td nowrap="nowrap"> </td>
<td> </td>
<td colspan="2"> </td>
<td nowrap="nowrap"> </td>
<td> </td>
<td colspan="2"> </td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 52%; text-align: justify"><font style="font-size: 8pt">Forward contracts-asset position</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 9%; text-align: right"><font style="font-size: 8pt">352</font></td>
<td nowrap="nowrap" style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 9%; text-align: right"><font style="font-size: 8pt">-</font></td>
<td nowrap="nowrap" style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 9%; text-align: right"><font style="font-size: 8pt">352</font></td>
<td nowrap="nowrap" style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 9%; text-align: right"><font style="font-size: 8pt">-</font></td>
<td nowrap="nowrap" style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1.5pt; text-align: justify"><font style="font-size: 8pt">Interest rate swaps-liability position</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 8pt">(52,117</font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"><font style="font-size: 8pt">)</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 8pt">-</font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 8pt">(52,117</font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"><font style="font-size: 8pt">)</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 8pt">-</font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 3pt; text-align: justify"><font style="font-size: 8pt"><b>Total</b></font></td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 8pt"><b>(51,765</b></font></td>
<td nowrap="nowrap" style="padding-bottom: 3pt"><font style="font-size: 8pt"><b>)</b></font></td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 8pt">-</font></td>
<td nowrap="nowrap" style="padding-bottom: 3pt"> </td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 8pt"><b>(51,765</b></font></td>
<td nowrap="nowrap" style="padding-bottom: 3pt"><font style="font-size: 8pt"><b>)</b></font></td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 8pt">-</font></td>
<td nowrap="nowrap" style="padding-bottom: 3pt"> </td></tr>
</table>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt; text-align: justify"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid">
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>June 30,</b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>2016</b></p></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid">
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Quoted Prices in</b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Active Markets for</b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Identical Assets</b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>(Level 1)</b></p></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid">
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Significant</b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Other</b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Observable</b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Inputs</b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>(Level 2)</b></p></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid">
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Unobservable</b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Inputs</b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>(Level 3)</b></p></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font-size: 8pt"><b>Recurring measurements:</b></font></td>
<td> </td>
<td colspan="2"> </td>
<td nowrap="nowrap"> </td>
<td> </td>
<td colspan="2"> </td>
<td nowrap="nowrap"> </td>
<td> </td>
<td colspan="2"> </td>
<td nowrap="nowrap"> </td>
<td> </td>
<td colspan="2"> </td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 52%; text-align: justify"><font style="font-size: 8pt">Forward contracts-asset position</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 9%; text-align: right"><font style="font-size: 8pt">194</font></td>
<td nowrap="nowrap" style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 9%; text-align: right"><font style="font-size: 8pt">-</font></td>
<td nowrap="nowrap" style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 9%; text-align: right"><font style="font-size: 8pt">194</font></td>
<td nowrap="nowrap" style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 9%; text-align: right"><font style="font-size: 8pt">-</font></td>
<td nowrap="nowrap" style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1.5pt; text-align: justify"><font style="font-size: 8pt">Interest rate swaps-liability position</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 8pt">(54,244</font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"><font style="font-size: 8pt">)</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 8pt">-</font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 8pt">(54,244</font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"><font style="font-size: 8pt">)</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 8pt">-</font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 3pt; text-align: justify"><font style="font-size: 8pt"><b>Total</b></font></td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 8pt"><b>(54,050</b></font></td>
<td nowrap="nowrap" style="padding-bottom: 3pt"><font style="font-size: 8pt"><b>)</b></font></td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 8pt">-</font></td>
<td nowrap="nowrap" style="padding-bottom: 3pt"> </td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 8pt"><b>(54,050</b></font></td>
<td nowrap="nowrap" style="padding-bottom: 3pt"><font style="font-size: 8pt"><b>)</b></font></td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 8pt">-</font></td>
<td nowrap="nowrap" style="padding-bottom: 3pt"> </td></tr>
</table>
2563000
0
2563000
6
3
Triton
Titan
Hull HN2123
Hull HN2124
Hull HN2125
Ensenada Express
n/a
Padma
Petalidi
Hull NCP0113
Hull NCP0114
Hull NCP0115
Hull NCP0116
Elafonisos
Hull NCP0152
Arkadia
Monemvasia
Hull YZJ1206
Hull YZJ1207
16-Oct-13
16-Oct-13
23-Dec-13
23-Dec-13
23-Dec-13
1-Jul-13
18-Dec-13
8-Jul-13
26-Jun-13
6-Jun-13
6-Jun-13
25-Jun-13
25-Jun-13
6-Jun-13
23-Dec-13
18-May-15
22-Sep-15
18-May-15
18-May-15
.40
.40
.40
.40
.40
.40
.25
.25
0.49
0.49
0.49
0.49
.49
0.49
0.49
0.49
0.49
.49
.49
533407000
290805000
16189000
11969000
549596000
302774000
18875000
5335000
451048000
495993000
62740000
68170000
121421000
126878000
185904000
193545000
106960000
111417000
55388000
60463000
40000000
42500000
42500000
45000000
60000000
66000000
26500000
30625000
78000000
82500000
39000000
0
818413000
827098000
1269461000
1323091000
1265052000
1318592000
1476000
1431000
19500000
246701000
65816000
559466000
180679000
90339000
40811000
45793000
49817000
38334000
40811000
4975000
4982000
33359000
35829000
456000
457000
239196000
242966000
391000
569000
14790000
14307000
15618000
18356000
210315000
217810000
22405000
26508000
36676000
41870000
10473000
7313000
61565000
63300000
.82
.85
75474844
74876866
3061000
-2203000
0
60000
-2203000
3061000
-51000
-51000
69028000
72867000
30698000
30698000
30699000
30783000
176771000
315068000
226499000
225105000
-1394000
15013000
-223000
211486000
-1171000
225105000
-11336000
-8897000
-6602000
-33302000
-35369000
-800000
3874000
8469000
34149000
36395000
38023000
44864000
376706000
198759000
122306000
93841000
217011000
1229378000
58845000
5
2
3
up to 93 months
365 days
earliest redelivery dates possible
23301000
22667000
11489000
17777000
885000
946000
0
349000
866000
0
135000
131000
0.50
0.04
0.50
-14550000
-15574000
0
-60000
-15574000
-14550000
11489000
17777000
0
0
17777000
11489000
Gain / (Loss) on derivative instruments, net
Gain on derivative instruments, net
Gain / (Loss) on derivative instruments, net
3591000
-4101000
-60000
0
-158000
519000
519000
-158000
Gain on derivative instruments, net
Gain on derivative instruments, net
54244000
52117000
0
54244000
0
0
52117000
0
54050000
51765000
0
54050000
0
0
51765000
0
194000
352000
0
194000
0
0
352000
0
27872000
88000000
8177000
8615000
<p style="margin: 0"><font style="font: 8pt Times New Roman, Times, Serif">The newbuild vessels <i>MSC Azov</i>,
<i>MSC Ajaccio</i> and <i>MSC Amalfi</i>.<i> </i>Upon the delivery of each vessel, the Company agreed with a financial institution
to refinance the then outstanding balance of the loans relating to<i> </i>these vessels, by entering into a ten-year sale
and leaseback transaction for each vessel upon their respective deliveries.</font></p>
85572000
256716000
3770000
3759000
45
1898384000
Sparrow Holdings LP (York)
2015-05-18
between 25% and 75%
2024-05-18
19
6006000
1658000
4348000
953000
2125000
2188000
0.29
0.476563
0.531250
0.546875
2016-08-17
2016-07-15
2016-07-15
2016-07-15
2016-08-03
2016-07-14
2016-07-14
2016-07-14
3953000
4200000
4009000
4332000
4409
4499
682
-772
-1476
2933
841119000
904627000
43595000
39654000
0
-60000
-60000
202393000
207439000
10649000
12463000
4
16
5000000
20000000
1.0691
1.0725
4343000
7873000
2746000
5383000
299200
299200
1000000000
2000000
0.88
2.125
1.90625
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
100000000
145543000
96523000
48042000
93547000
100584000
96616000
10000000
0.0001
0.0001
0.0001
0.0001
0.29
.29
.28
.28
.476563
0.476563
.531250
0.531250
0.476563
0.476563
0.531250
0.531250
0.546875
0.546875
7/14/2010
8/27/2010
February 2006
June 2006
December 2007
January 2008
May 2008
November 2010
August 2011
October 2011
October 2011
9000000
11300000
140000000
39000000
120000000
229200000
152800000
120000000
0.7
9000000
11300000
133700000
113700000
August 2012
April 2014
March 2012
2015-05-29
2014-05-21
May 2014
September 2014
November 2015
75000000
75000000
0
106960000
40000000
42500000
60000000
26500000
78000000
63666000
122238000
12075000
23100000
0
62740000
61393000
60028000
20213000
39000000
66000000
4202000
2334000
6495000
6000000
3900000
10
4
5
9
4
4
18
16
15
14
10
17
16
13
20
July 2016 until January 2021
August 2016 to February 2018
August 2016 to August 2018
December 2016 to December 2020
August 2016 to February 2018
November 2016 to May 2018
August 2016 to November 2020
July 2016 to June 2020
August 2016 to February 2020
July 2016 to October 2019
August 2016 to August 2019
September 2016 to December 2018
August 2016 to August 2020
September 2016 to June 2020
August 2016 to May 2021
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.
1.11%-6.75%
1.61%-6.75%
.043
0.042
26613000
31829000
1162501000
88569000
0
0
46000
0
46000
151848000
10697000
2016-08-05
220755000
-5667000
2024
-6604000
15419000
-4409000
-4499000
-189592000
-185259000
1452000
6777000
8229000
1406000
676000
3567000
7802000
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).
2888000
23400000
2744000
18 months
484000
321000
787400
$2,500 and 598,400 shares
.0075
<p style="font: 11px/normal Verdana, Helvetica, Sans-Serif; color: rgb(34, 34, 34)"><font style="font: normal 8pt Times New Roman, Times, Serif; text-transform: none; letter-spacing: normal; word-spacing: 0px; background-color: rgb(255, 255, 255)">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.</font></p>
2015-03-03
2015-11-02