GlobeNewswire Inc | Jul 28, 2021 06:48AM EDT

July 28, 2021

MONACO, July 28, 2021 (GLOBE NEWSWIRE) -- Costamare Inc. (Costamare or the Company) (NYSE: CMRE) today reported unaudited financial results for the second quarter (Q2 2021) and six-months ended June 30, 2021.

I. PROFITABILITY? Q2 2021 Net Income available to common stockholders of $82.8 million.? Q2 2021 Earnings per Share of $0.67.? Q2 2021 Adjusted Net Income available to common stockholders^(^1^) of $58.3 million.? Q2 2021 Adjusted Earnings per Share^(^1^) of $0.47.

II. SALE AND PURCHASE ACTIVITY? Agreed to acquire an additional 21 dry bulk vessels.? Total fleet of 37 committed dry bulk vessels, 14 of which have been delivered.? Delivered the 1996-built, 1,504 TEU containership Prosper to her new owners. The sale resulted in a capital gain of $1.7 million.

III. NEW CHARTER ARRANGEMENTS 10 new or extended container vessel charters since last quarter including the forward fixture of the two 2006-built, 9,469 TEU vessels Cosco? Guangzhou and Cosco Ningbo for 3 years at a daily rate of $72,700, with estimated delivery to the new charterer in between the second and third quarters of 2022. The current daily rate for these vessels is $30,900.? 7 new dry bulk vessel charters.

IV. NEW DEBT FINANCING AND CAPITAL STRUCTURE? New agreements for the financing of containerships since last quarter for an aggregate amount of $261.6 million. New agreements for the financing of dry bulk vessels since last quarter for? an aggregate amount of $389 million including two hunting license bank facilities totaling $245 million. New commitment in the form of a hunting license facility for the financing? of the acquisition of dry bulk vessels for an aggregate amount of $150 million with a European financial institution, which is subject to documentation. Liquidity of $353.8 million as of the end of Q2 2021 (including our share of cash amounting to $4.9 million held in companies co-owned with York? Capital), which coupled with the $210.8 million of undrawn funds from the two recently signed hunting license bank facilities amounts to $564.6 million.

(1) Adjusted Net Income available to common stockholders and respective per share figures are non-GAAP measures and should not be used in isolation or as substitutes for Costamares financial results presented in accordance with U.S. generally accepted accounting principles (GAAP). For the definition and reconciliation of these measures to the most directly comparable financial measure calculated and presented in accordance with GAAP, please refer to Exhibit I.

NEW BUSINESS DEVELOPMENTS

A. New charter agreements

-- The Company has chartered in total 10 containerships since our previous quarterly earnings release. More specifically, the Company agreed to: Charter the 2006-built, 9,469 TEU containerships Cosco Guangzhou and Cosco Ningbo for a period of 36 to 39 months at charterers option, commencing between the second and third quarters of 2022, each at a daily rate of $72,700. Current daily rate is $30,900.Charter the 2003-built, 6,724 TEU containership MSC Methoni with Maersk for a period of 56 to 60 months at charterers option, commencing between September 2021 and December 2021, at a daily rate of $46,500. Current daily rate is $29,000.Charter the 2011-built, 4,178 TEU containership Neokastro with CMA CGM for a period of 60 to 63 months, commencing in the first quarter of 2022, at a daily rate of $39,000. Current daily rate is $24,000.Charter the 2001-built, 6,712 TEU containership Porto Cheli with Maersk for a period of 60 to 64 months at charterers option, starting from June 9, 2021, at a daily rate of $30,075.Charter the 2002-built, 5,908 TEU containership Porto Kagio with Maersk for a period of 60 to 64 months at charterers option, starting from June 9, 2021, at a daily rate of $28,822.Charter the 2002-built, 5,570 TEU containership Porto Germeno with Maersk for a period of 60 to 64 months at charterers option, starting from June 29, 2021, at a daily rate of $28,822.Extend the charter of the 2002-built, 4,132 TEU containership Ulsan with Maersk for a period starting from October 1, 2021 and expiring at charterers option during the period from January 20, 2026 to May 20, 2026, at a daily rate of $34,730. Current daily rate is $12,000.Charter the 2001-built, 1,550 TEU containership Arkadia with China Navigation for a period of 22 to 24 months at charterers option, starting from July 5, 2021, at a daily rate of $21,500. Previous daily rate was $8,650.Extend the charter of the 2001-built, 1,078 TEU containership Luebeck with MSC for a period starting from March 19, 2022 for a period of 24 to 26 months at charterers option, at a daily rate of $15,000. Current daily rate is $7,750. -- The Company has chartered in total 7 dry bulk vessels. More specifically, the Company has:Chartered the 2012-built, 81,500 dwt dry bulk vessel Builder for a period expiring between October 7, 2021 and January 5, 2022 at charterers option, at a daily rate of $25,000.Chartered the 2011-built, 56,700 dwt dry bulk vessel Pegasus for a period expiring between September 25, 2021 and December 9, 2021 at charterers option, at a daily rate of $26,150.Chartered the 2012-built, 58,000 dwt dry bulk vessel Eracle for a period expiring between October 11, 2021 and December 25, 2021 at charterers option, at a daily rate of $30,000.Chartered the 2010-built, 79,700 dwt dry bulk vessel Sauvan for a period expiring between October 17, 2021 and December 31, 2021 at charterers option, at a daily rate of $30,250.Chartered the 2011-built, 34,600 dwt dry bulk vessel Bernis for a period expiring between November 17, 2021 and January 31, 2022 at charterers option, at a daily rate of $25,250.Chartered the 2006-built, 55,700 dwt dry bulk vessel Peace for a period expiring between September 12, 2021 and September 17, 2021 at charterers option, at a daily rate of $28,000.Chartered the 2006-built, 55,700 dwt dry bulk vessel Pride for a period expiring around the end of August 2021, at a daily rate of $31,000.

B. Dry Bulk Vessels Acquisitions

-- Since our previous quarterly earnings release, we have taken delivery of the following 14 dry bulk vessels: m/v Builder, 2012-built, 81,500 dwt.m/v Sauvan, 2010-built, 79,700 dwt.m/v Seabird, 2016-built, 63,600 dwt.m/v Dawn, 2018-built, 63,500 dwt.m/v Eracle, 2012-built, 58,000 dwt.m/v Pegasus, 2011-built, 56,700 dwt.m/v Peace, 2006-built, 55,700 dwt.m/v Pride, 2006-built, 55,700 dwt.m/v Interlink Verity, 2012-built, 37,200 dwt.m/v Acuity, 2011-built, 37,100 dwt.m/v Bernis, 2011-built, 34,600 dwt.m/v Manzanillo, 2010-built, 34,400 dwt.m/v Alliance, 2012-built, 33,800 dwt.m/v Adventure, 2011-built, 33,800 dwt. -- Furthermore, we have agreed to acquire the following 23 dry bulk vessels until the end of 2021: m/v Spring Aeolian (tbr. Aeolian), 2012-built, 83,500 dwt.m/v Jaigarh (tbr. Greneta), 2010-built, 82,200 dwt.m/v Pedhoulas Farmer (tbr. Farmer), 2012-built, 81,500 dwt.m/v Imperial Rose (tbr. Rose), 2008-built, 76,600 dwt.m/v Darya Lakshmi (tbr. Bermondi), 2009-built, 55,500 dwt.m/v Bulk Titan (tbr. Titan), 2009-built, 58,100 dwt.m/v Star Athena (tbr. Athena), 2012-built, 58,000 dwt.m/v Bulk Curacao (tbr. Curacao), 2011-built, 57,900 dwt.m/v Bulk Uruguay (tbr. Uruguay), 2011-built, 57,900 dwt.m/v Viet Thuan 56-01 (tbr. Thunder), 2009-built, 57,300 dwt.m/v Serene Susannah (tbr. Serena), 2010-built, 57,300 dwt.m/v Atlantic Merida (tbr. Merida), 2012-built, 56,700 dwt.m/v Lara (tbr. Clara), 2008-built, 56,600 dwt.m/v Interlink Comity (tbr. Comity), 2010-built, 37,300 dwt.m/v Interlink Parity (tbr. Parity), 2012-built, 37,200 dwt.m/v Interlink Equity (tbr. Equity), 2013-built, 37,100 dwt.m/v N Discovery (tbr. Discovery), 2012-built, 37,000 dwt.m/v Jia Tai (tbr. Taibo), 2011-built, 35,100 dwt.m/v MS Charm (tbr. Charm), 2010-built, 32,500 dwt.m/v Atlantic Progress (tbr. Progress), 2011-built, 32,400 dwt.m/v Ming Yuan (tbr. Miner), 2010-built, 32,300 dwt.m/v Konstantinos M (tbr. Konstantinos), 2012-built, 32,200 dwt.m/v Great Resource (tbr. Resource), 2010-built, 31,800 dwt.

C. New Financing Agreements

-- In June 2021, we signed a loan facility agreement with a European financial institution for an amount of $158.1 million, in order to refinance the existing indebtedness of 8 containerships and finance the acquisition of containerships Porto Kagio, Porto Cheli and Porto Germeno. The new facility will be repayable over 5 years. -- In June 2021, we signed a loan facility agreement with a leading European financial institution for an amount of $79 million, in order to finance the acquisition of containerships Androusa, Norfolk, CO Kobe (tbr. Dyros) and Cosco Fukuyama (tbr. Gialova). The new facility will be repayable over 4 years. -- In July 2021, we signed a revolving loan facility agreement with a leading US financial institution for an amount of $24.5 million. The new facility will be repayable over 1 year. -- In July 2021, we signed a loan facility agreement with a leading European financial institution for an amount of $81.5 million, in order to finance the acquisition of 8 dry bulk vessels. The facility will be repayable over 5 years. -- In July 2021, we signed a loan facility agreement with a leading European financial institution for an amount of $62.5 million, in order to finance the acquisition of 8 dry bulk vessels. The facility will be repayable over 5 years. -- In July 2021, we signed a hunting license loan facility agreement with a European financial institution for an amount of up to $120 million for the purposes of financing the acquisition cost of dry bulk vessels. The facility will be repayable over a period of 5 to 6 years. -- In July 2021, we signed a hunting license loan facility agreement with a European financial institution for an amount of up to $125 million for the purposes of financing the acquisition cost of dry bulk vessels. The facility will be repayable over a period of 5 years.

D. Dividend announcements

-- On July 1, 2021, we declared a dividend for the quarter ended June 30, 2021, of $0.115 per share on our common stock, which will be paid on August 5, 2021, to stockholders of record of common stock as of July 20, 2021. -- On July 1, 2021, we declared a dividend of $0.476563 per share on our Series B Preferred Stock, a dividend of $0.531250 per share on our Series C Preferred Stock, a dividend of $0.546875 per share on our Series D Preferred Stock and a dividend of $0.554688 per share on our Series E Preferred Stock, which were all paid on July 15, 2021 to holders of record as of July 14, 2021.

Mr. Gregory Zikos, Chief Financial Officer of Costamare Inc., commented:

The container market rebound that began in the second half of last year has continued into the first half of this year, drawing strength from favorable supply and demand dynamics. Strong consumer demand, low inventory levels, and supply chain constraints have all contributed to record charter rates and longer charter durations.

All our containerships chartered during the quarter have been fixed at increasingly high levels of hire.

On the dry bulk side, we are pleased to report the acquisition of 21 additional vessels, since we first announced our entry into this sector. Our dry bulk fleet comprises of 37 vessels in total between 32,000 DWT and 85,000 DWT, with an average age of 10 years. Up to now, 14 ships have been delivered, with the rest of the fleet expected to be delivered by year-end.

The dry bulk acquisitions result from our decision to invest in this liquid sector where supply is limited by a low orderbook and demand is being driven by increased infrastructure spending and commodity consumption.

Supported by contracted revenues of US$ 3.3 billion and an average time charter duration of more than four years for our containership fleet, we have 15 containerships coming off charter over the next 18 months and 37 dry bulk vessels operating in the spot market, favorably positioning our company, should the currently strong market conditions continue.

Financial Summary

Six-month period ended Three-month period ended June 30, June 30,(Expressedin thousandsof U.S.dollars, 2020 2021 2020 2021 except shareand pershare data): Voyage $ 233,273 $ 293,495 $ 111,869 $ 166,770 revenueAccruedcharter $ 7,721 $ 2,146 $ 7,025 $ 1,114 revenue (1)Amortizationof $ 95 $ (345 ) $ 47 $ (345 )Time-charterassumedVoyagerevenueadjusted on $ 241,089 $ 295,296 $ 118,941 $ 167,539 a cash basis(2) Adjusted NetIncomeavailable to $ 64,265 $ 96,262 $ 31,705 $ 58,275 commonstockholders(3)WeightedAverage 119,927,560 122,615,427 120,319,180 122,844,260 number ofsharesAdjustedEarnings per $ 0.54 $ 0.79 $ 0.26 $ 0.47 share (3) Net Income / $ (43,447 ) $ 158,757 $ (76,223 ) $ 90,616 (Loss)Net Income /(Loss)available to $ (58,289 ) $ 143,309 $ (83,913 ) $ 82,762 commonstockholdersWeightedAverage 119,927,560 122,615,427 120,319,180 122,844,260 number ofsharesEarnings /(Losses) per $ (0.49 ) $ 1.17 $ (0.70 ) $ 0.67 share

(1) Accrued charter revenue represents the difference between cash received during the period and revenue recognized on a straight-line basis. In the early years of a charter with escalating charter rates, voyage revenue will exceed cash received during the period and during the last years of such charter cash received will exceed revenue recognized on a straight-line basis.(2) Voyage revenue adjusted on a cash basis represents Voyage revenue after adjusting for non-cash Accrued charter revenue recorded under charters with escalating charter rates. However, Voyage revenue adjusted on a cash basis is not a recognized measurement under U.S. generally accepted accounting principles (GAAP). We believe that the presentation of Voyage revenue adjusted on a cash basis is useful to investors because it presents the charter revenue for the relevant period based on the then current daily charter rates. The increases or decreases in daily charter rates under our charter party agreements are described in the notes to the Fleet List below.(3) Adjusted Net Income available to common stockholders and Adjusted Earnings per Share are non-GAAP measures. Refer to the reconciliation of Net Income to Adjusted Net Income.

Non-GAAP Measures

The Company reports its financial results in accordance with U.S. GAAP. However, management believes that certain non-GAAP financial measures used in managing the business may provide users of these financial measures additional meaningful comparisons between current results and results in prior operating periods. Management believes that these non-GAAP financial measures can provide additional meaningful reflection of underlying trends of the business because they provide a comparison of historical information that excludes certain items that impact the overall comparability. Management also uses these non-GAAP financial measures in making financial, operating and planning decisions and in evaluating the Companys performance. The tables below set out supplemental financial data and corresponding reconciliations to GAAP financial measures for the three and the six-month periods ended June 30, 2021 and 2020. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, voyage revenue or net income as determined in accordance with GAAP. Non-GAAP financial measures include (i) Voyage revenue adjusted on a cash basis (reconciled above), (ii) Adjusted Net Income available to common stockholders and (iii) Adjusted Earnings per Share.

Exhibit I Reconciliation of Net Income to Adjusted Net Income available to common stockholders and Adjusted Earnings per Share

Six-month period ended Three-month period ended June 30, June 30,(Expressed inthousands ofU.S. dollars, 2020 2021 2020 2021 except shareand per sharedata) Net Income / $ (43,447 ) $ 158,757 $ (76,223 ) $ 90,616 (Loss)Earningsallocated to (15,461 ) (15,448 ) (7,768 ) (7,854 )PreferredStockGain onretirement of 619 - 78 - PreferredStockNet Income /(Loss)available to (58,289 ) 143,309 (83,913 ) 82,762 commonstockholdersAccruedcharter 7,721 2,146 7,025 1,114 revenueGeneral andadministrativeexpenses - 1,508 3,207 832 1,768 non-cashcomponentAmortizationof Time 95 (345 ) 47 (345 )charterassumedRealized gainon Euro/USD (78 ) (174 ) (54 ) (96 )forwardcontracts (1)Vessels?impairment 31,577 - 28,506 - lossGain on sale /disposals of (10 ) (1,406 ) - (1,666 )vessels, netNon-recurring,non-cashwrite-off of 478 363 478 - loan deferredfinancingcostsLoss onvessels held 79,197 - 78,965 - for sale(Gain) / losson derivativeinstruments,excludinginterestaccrued and 2,066 1,012 (181 ) (105 )realized onnon-hedgingderivativeinstruments(1)Fair valuemeasurement /Change in fair - (51,094 ) - (25,157 )value ofequitysecuritiesOthernon-recurring, - (756 ) - - non-cash itemAdjusted NetIncomeavailable to $ 64,265 $ 96,262 $ 31,705 $ 58,275 commonstockholdersAdjustedEarnings per $ 0.54 $ 0.79 $ 0.26 $ 0.47 ShareWeightedaverage number 119,927,560 122,615,427 120,319,180 122,844,260 of shares

Adjusted Net Income available to common stockholders and Adjusted Earnings per Share represent Net Income after earnings allocated to preferred stock and gain on retirement of preferred stock, but before non-cash Accrued charter revenue recorded under charters with escalating charter rates, realized gain on Euro/USD forward contracts, vessels impairment loss, gain on sale / disposal of vessels, net, loss on vessels held for sale, fair value measurement of equity securities / change in fair value of equity securities, non-recurring, non-cash write-off of loan deferred financing costs, general and administrative expenses - non-cash component, non-cash changes in fair value of derivatives and other non-recurring, non-cash items. Accrued charter revenue is attributed to the timing difference between the revenue recognition and the cash collection. However, Adjusted Net Income available to common stockholders and Adjusted Earnings per Share are not recognized measurements under U.S. GAAP. We believe that the presentation of Adjusted Net Income available to common stockholders and Adjusted Earnings per Share are useful to investors because they are frequently used by securities analysts, investors and other interested parties in the evaluation of companies in our industry. We also believe that Adjusted Net Income available to common stockholders and Adjusted Earnings per Share are useful in evaluating our ability to service additional debt and make capital expenditures. In addition, we believe that Adjusted Net Income available to common stockholders and Adjusted Earnings per Share are useful in evaluating our operating performance and liquidity position compared to that of other companies in our industry because the calculation of Adjusted Net Income available to common stockholders and Adjusted Earnings per Share generally eliminates the effects of the accounting effects of capital expenditures and acquisitions, certain hedging instruments and other accounting treatments, items which may vary for different companies for reasons unrelated to overall operating performance and liquidity. In evaluating Adjusted Net Income available to common stockholders and Adjusted Earnings per Share, you should be aware that in the future we may incur expenses that are the same as or similar to some of the adjustments in this presentation. Our presentation of Adjusted Net Income available to common stockholders and Adjusted Earnings per Share should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items.

(1) Items to consider for comparability include gains and charges. Gains positively impacting Net Income available to common stockholders are reflected as deductions to Adjusted Net Income available to common stockholders. Charges negatively impacting Net Income available to common stockholders are reflected as increases to Adjusted Net Income available to common stockholders.

Results of Operations

Three-month period ended June 30, 2021 compared to the three-month period ended June 30, 2020

During the three-month periods ended June 30, 2021 and 2020, we had an average of 71.5 and 60.0 vessels, respectively, in our fleet.

In the three-month period ended June 30, 2021, we accepted delivery of the newbuild container vessel YM Tiptop with a TEU capacity of 12,690, the secondhand container vessels Androusa, Norfolk, Porto Cheli, Porto Kagio and Porto Germeno with an aggregate TEU capacity of 26,705 and we sold the container vessel Prosper with a TEU capacity of 1,504.

Furthermore, in the three-month period ended June 30, 2021, we acquired all of the equity interest of sixteen companies (which owned or had committed to acquire dry bulk vessels) owned by our Chairman and Chief Executive Officer, Konstantinos Konstantakopoulos. We agreed to acquire these companies from Mr. Konstantakopoulos at cost with no mark-up or premium payable to Mr. Konstantakopoulos or his affiliated entities. Mr. Konstantakopoulos will not receive a profit as a result of the acquisition. Three of the dry bulk vessels that were part of the acquisition, the Builder, Pegasus and Adventure (with an aggregate DWT of 171,997), were delivered to us during the three-month period ended June 30, 2021.

In the three-month periods ended June 30, 2021 and 2020, our fleet ownership days totaled 6,509 and 5,460 days, respectively. Ownership days are one of the primary drivers of voyage revenue and vessels operating expenses and represent the aggregate number of days in a period during which each vessel in our fleet is owned.

Consolidated Financial Results and vessels operational data (1)

(Expressed in millions of U.S. Three-month period Percentagedollars, ended June 30, Changeexcept percentages) 2020 2021 Change Voyage revenue $ 111.9 $ 166.8 $ 54.9 49.1 %Voyage expenses (1.6 ) (2.0 ) 0.4 25.0 %Voyage expenses ? related parties (1.5 ) (2.4 ) 0.9 60.0 %Vessels? operating expenses (26.9 ) (37.8 ) 10.9 40.5 %General and administrative (2.4 ) (1.7 ) (0.7 ) (29.2 %)expensesManagement fees ? related parties (5.2 ) (6.3 ) 1.1 21.2 %General and administrative (0.8 ) (1.8 ) 1.0 125.0 %expenses - non-cash componentAmortization of dry-docking and (2.3 ) (2.5 ) 0.2 8.7 %special survey costsDepreciation (27.6 ) (31.6 ) 4.0 14.5 %Loss on vessels held for sale (79.0 ) - (79.0 ) n.m. Vessel?s impairment loss (28.5 ) - (28.5 ) n.m. Gain on sale / disposal of vessels - 1.7 1.7 n.m. Foreign exchange losses (0.1 ) - (0.1 ) n.m. Interest income 0.5 1.1 0.6 120.0 %Interest and finance costs (16.9 ) (20.4 ) 3.5 20.7 %Change in fair value measurement - 25.1 25.1 n.m. of equity securitiesIncome from equity method 4.1 1.0 (3.1 ) (75.6 %)investmentsOther (0.1 ) 1.3 1.4 n.m. Gain on derivative instruments 0.2 0.1 (0.1 ) (50.0 %)Net Income / (Loss) $ (76.2 ) $ 90.6

(Expressed in millions of Three-month period PercentageU.S. dollars, ended June 30,except percentages) 2020 2021 Change Change Voyage revenue $ 111.9 $ 166.8 $ 54.9 49.1 %Accrued charter revenue 7.0 1.1 (5.9 ) (84.3 %)Amortization of time charter 0.1 (0.3 ) (0.4 ) n.m. assumedVoyage revenue adjusted on a $ 119.0 $ 167.6 $ 48.6 40.8 %cash basis (2)

Three-month period ended PercentageVessels? operational data June 30, 2020 2021 Change Change Average number of vessels 60.0 71.5 11.5 19.2 %Ownership days 5,460 6,509 1,049 19.2 %Number of vessels under 1 6 5 dry-docking



Segmental Financial Summary (1)

Three-month period ended June 30, 2021 Container Dry bulk Other Total vessels vessels Voyage revenue $ 165.9 $ 0.9 $ - $ 166.8 Voyage expenses (1.9 ) (0.1 ) - (2.0 )Voyage expenses ? related parties (2.4 ) - - (2.4 )Vessels? operating expenses (37.6 ) (0.2 ) - (37.8 )General and administrative expenses (1.7 ) - - (1.7 )Management fees ? related parties (6.3 ) - - (6.3 )General and administrative expenses -non-cash component (1.8 ) - - (1.8 )Amortization of dry-docking andspecial survey costs (2.5 ) - - (2.5 )Depreciation (31.5 ) (0.1 ) - (31.6 )Gain on sale / disposal of vessels 1.7 - - 1.7 Interest income 1.1 - - 1.1 Interest and finance costs (20.4 ) - - (20.4 )Change in fair value measurement ofequity securities - - 25.1 25.1Income from equity method investments - - 1.0 1.0 Other 1.3 - - 1.3 Gain on derivative instruments 0.1 - - 0.1 Net Income $ 64.0 $ 0.5 $ 26.1 $ 90.6

(1) The results of dry bulk vessels are included from June 14, 2021. Prior to that, our results were attributable to container vessels only.(2) Voyage revenue adjusted on a cash basis is not a recognized measurement under U.S. generally accepted accounting principles (GAAP). Refer to Financial Summary above for the reconciliation of Voyage revenue adjusted on a cash basis.

Voyage Revenue

Voyage revenue increased by 49.1%, or $54.9 million, to $166.8 million during the three-month period ended June 30, 2021, from $111.9 million during the three-month period ended June 30, 2020. The increase is mainly attributable to (i) revenue earned by five container vessels acquired during the third and fourth quarter of 2020 and fifteen container vessels and three dry bulk vessels acquired during the first half of 2021 and (ii) to increased charter rates in certain of our container vessels; partly off-set by revenue not earned by four container vessels sold during the second half of 2020 and two container vessels sold during the first half of 2021.

Voyage revenue adjusted on a cash basis (which eliminates non-cash Accrued charter revenue) increased by 40.8%, or $48.6 million, to $167.6 million during the three-month period ended June 30, 2021, from $119.0 million during the three-month period ended June 30, 2020. Accrued charter revenue for the three-month periods ended June 30, 2021 and 2020 was a positive amount of $1.1 million and $7.0 million, respectively.

Voyage Expenses

Voyage expenses were $2.0 million and $1.6 million for the three-month periods ended June 30, 2021 and 2020, respectively. Voyage expenses mainly include (i) off-hire expenses of our vessels, primarily related to fuel consumption and (ii) third party commissions.

Voyage Expenses related parties

Voyage expenses related parties were $2.4 million and $1.5 million for the three-month periods ended June 30, 2021 and 2020, respectively. Voyage expenses related parties represent (i) fees of 1.25% in the aggregate on voyage revenues charged by a related manager and a service provider and (ii) charter brokerage fees (in respect of our container vessels) payable to two related charter brokerage companies for an amount of approximately $0.3 million and $0.1 million, in the aggregate, for the three-month periods ended June 30, 2021 and 2020, respectively.

Vessels Operating Expenses

Vessels operating expenses, which also include the realized gain under derivative contracts entered into in relation to foreign currency exposure, were $37.8 million and $26.9 million during the three-month periods ended June 30, 2021 and 2020, respectively. Daily vessels operating expenses were $5,811 and $4,925 for the three-month periods ended June 30, 2021 and 2020, respectively. Daily operating expenses are calculated as vessels operating expenses for the period over the ownership days of the period.

General and Administrative Expenses

General and administrative expenses were $1.7 million and $2.4 million during the three-month periods ended June 30, 2021 and 2020, respectively, and both include $0.63 million paid to a related manager.

Management Fees related parties

Management fees paid to our related party managers were $6.3 million and $5.2 million during the three-month periods ended June 30, 2021 and 2020, respectively.

General and Administrative Expenses - non-cash component

General and administrative expenses - non-cash component for the three-month period ended June 30, 2021 amounted to $1.8 million, representing the value of the shares issued to a related party manager on June 30, 2021. General and administrative expenses - non-cash component for the three-month period ended June 30, 2020 amounted to $0.8 million, representing the value of the shares issued to a related party manager on June 30, 2020.

Amortization of Dry-Docking and Special Survey

Amortization of deferred dry-docking and special survey costs was $2.5 million and $2.3 million during the three-month periods ended June 30, 2021 and 2020, respectively. During the three-month period ended June 30, 2021, five vessels underwent and completed their special survey and one vessel was in the process of completing its special survey. During the three-month period ended June 30, 2020, one vessel underwent and completed its special survey.

Depreciation

Depreciation expense for the three-month periods ended June 30, 2021 and 2020 was $31.6 million and $27.6 million, respectively.

Gain on Sale / Disposal of Vessels

During the three-month period ended June 30, 2021, we recorded a gain of $1.7 million from the sale of the container vessel Prosper, which was classified as vessel held for sale as at March 31, 2021.

Loss on Vessels Held for Sale

During the three-month period ended June 30, 2021, the container vessels Zim New York, and Zim Shanghai were classified as vessels held for sale and the container vessel Venetiko continues to be classified as vessel held for sale (initially classified as vessel held for sale as of March 31, 2021). No loss on vessels held for sale was recorded during the second quarter of 2021, since each vessels estimated market value exceeded each vessels carrying value. During the three-month period ended June 30, 2020, we recorded a loss of $78.7 million on the container vessels Kokura, Kawasaki and Singapore Express that were classified as vessels held for sale as at June 30, 2020, and an additional loss of $0.3million on the container vessel Zagora that was classified as vessel held for sale as at December 31, 2019, representing the expected loss from their sale during the next twelve-month period.

Vessels impairment loss

During the three-month period ended June 30, 2021, no impairment loss was recorded. During the three-month period ended June 30, 2020, we recorded an impairment loss in relation to two of our container vessels in the amount of $28.5 million, in the aggregate.

Interest Income

Interest income amounted to $1.1 million and $0.5 million for the three-month periods ended June 30, 2021 and 2020, respectively.

Interest and Finance Costs

Interest and finance costs were $20.4 million and $16.9 million during the three-month periods ended June 30, 2021 and 2020, respectively. The increase is mainly attributable to the increased average loan balances during the three-month period ended June 30, 2021 compared to the three-month period ended June 30, 2020; partly off-set by decreased financing cost during the three-month period ended June 30, 2021 compared to the three-month period ended June 30, 2020.

Change in Fair Value of Equity securities

Change in fair value of equity securities of $25.1 million for the three-month period ended June 30, 2021, represents the difference between the aggregate fair value of 1,221,800 ordinary shares of ZIM that we own as at June 30, 2021 compared to the fair value of such shares as of March 31, 2021. ZIM completed its initial public offering and listing on the New York Stock Exchange of its ordinary shares on January 27, 2021.

Income from Equity Method Investments

During the three-month period ended June 30, 2021, we recorded an income from equity method investments of $1.0 million representing our share of the income in jointly owned companies pursuant to the Framework Deed dated May 15, 2013, as amended and restated (the Framework Deed), with York. Since late March 2021, we have held 100% of the equity interest in five previously jointly owned companies with York, and since then these five companies are consolidated in our consolidated financial statements. As of June 30, 2021, six companies are jointly owned with York (of which, five companies currently own container vessels). During the three-month period ended June 30, 2020, we recorded an income from equity method investments of $4.1 million relating to investments under the Framework Deed.

Loss on Derivative Instruments

The fair value of our ten interest rate derivative instruments and our two cross currency rate swaps which were outstanding as of June 30, 2021 equates to the amount that would be paid by us or to us should those instruments be terminated. As of June 30, 2021, the fair value of these ten interest rate derivative instruments and two cross currency rate swaps, in aggregate, amounted to a liability of $11.7 million. The change in the fair value of the interest rate derivative instruments and cross currency rate swaps that qualified for hedge accounting is recorded in Other Comprehensive Income (OCI) and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings and is presented in the same income statement line item as the earnings effect of the hedged item while the change in the fair value of the interest rate derivatives, representing hedge components excluded from the assessment of effectiveness are recognized currently in earnings and are presented in Gain/(Loss) on Derivative Instruments. The change in the fair value of the interest rate derivative instruments that did not qualify for hedge accounting is recorded in Gain/(Loss) on Derivative Instruments. For the three-month period ended June 30, 2021, a loss of $3.9 million has been included in OCI and a loss of $0.1 million has been included in Loss on derivative instruments in the consolidated statement of income, resulting from the fair market value change of the interest rate derivative instruments during the three-month period ended June 30, 2021.

Cash Flows

Three-month periods ended June 30, 2021 and 2020

Condensed cash flows Three-month period ended June 30,(Expressed in millions of U.S. dollars) 2020 2021 Net Cash Provided by Operating Activities $ 71.5 $ 104.0 Net Cash Used in Investing Activities $ (3.1 ) $ (195.1 )Net Cash Provided by / (Used in) Financing $ (104.7 ) $ 204.2 Activities

Net Cash Provided by Operating Activities

Net cash flows provided by operating activities for the three-month period ended June 30, 2021, increased by $32.5 million to $104.0 million, from $71.5 million for the three-month period ended June 30, 2020. The increase is mainly attributable to increased cash from operations of $48.6 million, to the favorable change in working capital position, excluding the current portion of long-term debt and the accrued charter revenue (representing the difference between cash received in that period and revenue recognized on a straight-line basis) of $10.3 million; partly off by increased payments for interest (including swap payments) of $2.4 million during the three-month period ended June 30, 2021 compared to the three-month period ended June 30, 2020 and by increased special survey costs of $5.0 million during the three-month period ended June 30, 2021 compared to the three-month period ended June 30, 2020.

Net Cash Used in Investing Activities

Net cash used in investing activities was $195.1 million in the three-month period ended June 30, 2021, which mainly consisted of (i) net payments for the acquisition of the 51% equity interest in one company, previously jointly owned with York pursuant to the Framework Deed, (ii) payments for the delivery of one newbuild container vessel, four secondhand container vessels and one dry bulk vessel, (iii) advance payments for the acquisition of twelve secondhand dry bulk vessels and (iv) payments for upgrades for certain of our vessels; partly off-set by proceeds we received from the sale of one vessel.

Net cash used in investing activities was $3.1 million in the three-month period ended June 30, 2020, which mainly consisted of payments for upgrades for certain of our container vessels; partly off-set by return of capital we received from nine entities jointly owned with York pursuant to the Framework Deed and advance payments we received from the sale of two container vessels that were classified as vessels held for sale as at June 30, 2020.

Net Cash Provided by / (Used in) Financing Activities

Net cash provided by financing activities was $204.2 million in the three-month period ended June 30, 2021, which mainly consisted of (a) $227.8 million net proceeds relating to our debt financing agreements (including proceeds we received from the issuance of 100.0 million unsecured bond on the Athens Exchange), (b) $9.4 million we paid for dividends to holders of our common stock for the first quarter of 2021 and (c) $0.9 million we paid for dividends to holders of our 7.625% Series B Cumulative Redeemable Perpetual Preferred Stock (Series B Preferred Stock), $2.1 million we paid for dividends to holders of our 8.500% Series C Cumulative Redeemable Perpetual Preferred Stock (Series C Preferred Stock), $2.2 million we paid for dividends to holders of our 8.75% Series D Cumulative Redeemable Perpetual Preferred Stock (Series D Preferred Stock) and $2.5 million we paid for dividends to holders of our 8.875% Series E Cumulative Redeemable Perpetual Preferred Stock (Series E Preferred Stock) for the period from January 15, 2021 to April 14, 2021.

Net cash used in financing activities was $104.7 million in the three-month period ended June 30, 2020, which mainly consisted of (a) $85.9 million net payments relating to our debt financing agreements, (b) $9.1 million we paid for dividends to holders of our common stock for the first quarter of 2020 and (c) $0.9 million we paid for dividends to holders of our Series B Preferred Stock, $2.1 million we paid for dividends to holders of our Series C Preferred Stock, $2.2 million we paid for dividends to holders of our Series D Preferred Stock and $2.5 million we paid for dividends to holders of our Series E Preferred Stock for the period from January 15, 2020 to April 14, 2020.

Six-month period ended June 30, 2021 compared to the six-month period ended June 30, 2020

During the six-month periods ended June 30, 2021 and 2020, we had an average of 67.1 and 60.1 vessels, respectively, in our fleet.

In the six-month period ended June 30, 2021, (i) we accepted delivery of the newbuild container vessels YM Target and YM Tiptop with an aggregate TEU capacity of 25,380, the secondhand container vessels Aries, Argus, Glen Canyon, Androusa, Norfolk, Porto Cheli, Porto Kagio and Porto Germeno with an aggregate TEU capacity of 45,331 and we sold the container vessels Halifax Express and Prosper with an aggregate TEU capacity of 6,394 and (ii) we acquired (a) the 75% equity interest of York Capital Management in each of the 11,010 TEU container vessels Cape Kortia and Cape Sounio and (b) the 51% equity interest of York Capital Management in each of the 11,010 TEU container vessels Cape Tainaro, Cape Artemisio and Cape Akritas and as a result we obtained 100% of the equity interest in each of these five vessels.

Furthermore, in the six-month period ended June 30, 2021, we acquired all of the equity interest of sixteen companies (which owned or had committed to acquire dry bulk vessels) owned by our Chairman and Chief Executive Officer, Konstantinos Konstantakopoulos. We agreed to acquire these companies from Mr. Konstantakopoulos at cost with no mark-up or premium payable to Mr. Konstantakopoulos or his affiliated entities. Mr. Konstantakopoulos will not receive a profit as a result of the acquisition. Three of the dry bulk vessels that were part of the acquisition, the Builder, Pegasus and Adventure (with an aggregate DWT of 171,997), were delivered to us during the six-month period ended June 30, 2021.

In the six-month period ended June 30, 2020, we accepted delivery of the secondhand container vessel JPOVirgo with a TEU capacity of 4,258 and we sold the container vessel Neapolis with a TEU capacity of 1,645.

In the six-month periods ended June 30, 2021 and 2020, our fleet ownership days totaled 12,149 and 10,935 days, respectively. Ownership days are one of the primary drivers of voyage revenue and vessels operating expenses and represent the aggregate number of days in a period during which each vessel in our fleet is owned.

Consolidated Financial Results and vessels operational data (1)

(Expressed in millions of U.S. Six-month period Percentagedollars, ended June 30,except percentages) 2020 2021 Change Change Voyage revenue $ 233.3 $ 293.5 $ 60.2 25.8 %Voyage expenses (4.1 ) (3.1 ) (1.0 ) (24.4 %)Voyage expenses ? related (3.1 ) (4.3 ) 1.2 38.7 %partiesVessels? operating expenses (54.8 ) (69.6 ) 14.8 27.0 %General and administrative (3.8 ) (3.7 ) (0.1 ) (2.6 %)expensesManagement fees ? related (10.5 ) (11.8 ) 1.3 12.4 %partiesGeneral and administrative (1.5 ) (3.2 ) 1.7 113.3 %expenses - non-cash componentAmortization of dry-docking and (4.5 ) (4.8 ) 0.3 6.7 %special survey costsDepreciation (55.7 ) (58.7 ) 3.0 5.4 %Gain on sale / disposal of - 1.4 1.4 n.m. vessels, netLoss on vessels held for sale (79.2 ) - (79.2 ) n.m. Vessels? impairment loss (31.6 ) - (31.6 ) n.m. Foreign exchange gains / (0.2 ) 0.1 (0.3 ) n.m. (losses)Interest income 1.2 1.5 0.3 25.0 %Interest and finance costs (35.4 ) (36.5 ) 1.1 3.1 %Fair value measurement of equity - 51.1 51.1 n.m. securitiesIncome from equity method 8.2 5.0 (3.2 ) (39.0 %)investmentsOther 0.4 2.9 2.5 n.m. Loss on derivative instruments (2.1 ) (1.0 ) (1.1 ) (52.4 %)Net Income / (Loss) $ (43.4 ) $ 158.8

(Expressed in millions of Six-month period ended Percentage U.S. dollars, June 30,except percentages) 2020 2021 Change Change Voyage revenue $ 233.3 $ 293.5 $ 60.2 25.8 %Accrued charter revenue 7.7 2.1 (5.6 ) (72.7 %)Amortization of time 0.1 (0.3 ) (0.4 ) n.m. charter assumedVoyage revenue adjusted on $ 241.1 $ 295.3 $ 54.2 22.5 %a cash basis (2)

Six-month period ended June PercentageVessels? operational data 30, 2020 2021 Change Change Average number of vessels 60.1 67.1 7.0 11.6 %Ownership days 10,935 12,149 1,214 11.1 %Number of vessels under 7 9 2 dry-docking



Segmental Financial Summary (1)

Six-month period ended June 30, 2021 Container Dry bulk Other Total vessels vesselsVoyage revenue $ 292.6 $ 0.9 $ - $ 293.5 Voyage expenses (3.0 ) (0.1 ) - (3.1 )Voyage expenses ? related parties (4.3 ) - - (4.3 )Vessels? operating expenses (69.4 ) (0.2 ) - (69.6 )General and administrative expenses (3.7 ) - - (3.7 )Management fees ? related parties (11.8 ) - - (11.8 )General and administrative expenses - (3.2 ) - - (3.2 )non-cash componentAmortization of dry-docking and (4.8 ) - - (4.8 )special survey costsDepreciation (58.6 ) (0.1 ) - (58.7 )Gain on sale / disposal of vessels 1.4 - - 1.4 Foreign exchange gains 0.1 - - 0.1 Interest income 1.5 - - 1.5 Interest and finance costs (36.5 ) - - (36.5 )Fair value measurement of equity - - 51.1 51.1 securitiesIncome from equity method investments - - 5.0 5.0 Other 2.9 - - 2.9 Loss on derivative instruments (1.0 ) - - (1.0 )Net Income $ 102.2 $ 0.5 $ 56.1 $ 158.8

(1) The results of dry bulk vessels are included from June 14, 2021. Prior to that, our results were attributable to container vessels only.(2) Voyage revenue adjusted on a cash basis is not a recognized measurement under U.S. generally accepted accounting principles (GAAP). Refer to Financial Summary above for the reconciliation of Voyage revenue adjusted on a cash basis.

Voyage Revenue

Voyage revenue increased by 25.8%, or $60.2 million, to $293.5 million during the six-month period ended June 30, 2021, from $233.3 million during the six-month period ended June 30, 2020. The increase is mainly attributable to (i) revenue earned by five container vessels acquired during the second half of 2020, fifteen container vessels and three dry bulk vessels acquired during the first half of 2021, (ii) to decreased idle days of our fleet during the first half of 2021 compared to the first half of 2020, (iii) to increased charter rates in certain of our container vessels during the first half of 2021 compared to the first half of 2020; partly off-set by revenue not earned by five container vessels sold during the year ended December 31, 2020 and two container vessels sold during the first half of 2021.

Voyage revenue adjusted on a cash basis (which eliminates non-cash Accrued charter revenue), increased by 22.5%, or $54.2 million, to $295.3 million during the six-month period ended June 30, 2021, from $241.1 million during the six-month period ended June 30, 2020. Accrued charter revenue for the six-month periods ended June 30, 2021 and 2020 was a positive amount of $2.1 million and $7.7 million, respectively.

Voyage Expenses

Voyage expenses were $3.1 million and $4.1 million for the six-month periods ended June 30, 2021 and 2020, respectively. Voyage expenses mainly include (i) off-hire expenses of our vessels, primarily related to fuel consumption and (ii) third party commissions.

Voyage Expenses related parties

Voyage expenses related parties were $4.3 million and $3.1 million for the six-month periods ended June 30, 2021 and 2020, respectively. Voyage expenses related parties represent (i) fees of 1.25% in the aggregate on voyage revenues charged by a related manager and a service provider and (ii) charter brokerage fees (in respect of our container vessels) payable to two related charter brokerage companies for an amount of approximately $0.6 million and $0.2 million, in the aggregate, for the six-month periods ended June 30, 2021 and 2020, respectively.

Vessels Operating Expenses

Vessels operating expenses, which also include the realized gain under derivative contracts entered into in relation to foreign currency exposure, were $69.6 million and $54.8 million during the six-month periods ended June 30, 2021 and 2020, respectively. Daily vessels operating expenses were $5,729 and $5,008 for the six-month periods ended June 30, 2021 and 2020, respectively. Daily operating expenses are calculated as vessels operating expenses for the period over the ownership days of the period.

General and Administrative Expenses

General and administrative expenses were $3.7 million and $3.8 million during the six-month periods ended June 30, 2021 and 2020, respectively, and both include $1.3 million paid to a related manager.

Management Fees related parties

Management fees paid to our related party managers were $11.8 million and $10.5 million during the six-month periods ended June 30, 2021 and 2020, respectively.

General and Administrative Expenses - non-cash component

General and administrative expenses - non-cash component for the six-month period ended June 30, 2021 amounted to $3.2 million, representing the value of the shares issued to a related party manager on March 31, 2021 and on June 30, 2021. General and administrative expenses - non-cash component for the six-month period ended June 30, 2020 amounted to $1.5 million, representing the value of the shares issued to a related party manager on March 30, 2020 and June 30, 2020.

Amortization of Dry-Docking and Special Survey

Amortization of deferred dry-docking and special survey costs was $4.8 million and $4.5 million during the six-month periods ended June 30, 2021 and 2020, respectively. During the six-month period ended June 30, 2021, eight vessels underwent and completed their special survey and one vessel was in the process of completing its special survey. During the six-month period ended June 30, 2020, seven vessels underwent and completed their special survey.

Depreciation

Depreciation expense for the six-month periods ended June 30, 2021 and 2020 was $58.7 million and $55.7 million, respectively.

Gain on Sale / Disposal of Vessels, net

During the six-month period ended June 30, 2021, we recorded a net gain of $1.4 million from the sale of the container vessels Prosper and Halifax Express (asset held for sale as at December 31, 2020). During the six-month period ended June 30, 2020, we recorded a gain of $0.01 million from the sale of the container vessel Neapolis which was classified as asset held for sale as at December 31, 2019.

Loss on vessels held for sale

During the six-month period ended June 30, 2021, the container vessels Venetiko, Zim New York and Zim Shanghai were classified as vessels held for sale. No loss on vessels held for sale was recorded during thesix-month period ended June 30, 2021 since each vessels estimated market value exceeded each vessels carrying value. During the six-month period ended June 30, 2020, we recorded a loss of $78.7 million on the container vessels Kokura, Kawasaki and Singapore Express that were classified as vessels held for sale as at June 30, 2020 and an additional loss of $0.5million on the container vessel Zagora that was classified as vessel held for sale as at December 31, 2019, representing the expected loss from their sale during the next twelve-month period.

Vessels impairment loss

During the six-month period ended June 30, 2021 no impairment loss was recorded. During the six-month period ended June 30, 2020, we recorded an impairment loss in relation to five of our container vessels in the amount of $31.6 million, in the aggregate.

Interest Income

Interest income amounted to $1.5 million and $1.2 million for the six-month periods ended June 30, 2021 and 2020, respectively.

Interest and Finance Costs

Interest and finance costs were $36.5 million and $35.4 million during the six-month periods ended June 30, 2021 and 2020, respectively. The increase is mainly attributable to the increased average loan balances during the six-month period ended June 30, 2021 compared to the six-month period ended June 30, 2020; partly off-set by the decreased financing cost during the six-month period ended June 30, 2021 compared to the six-month period ended June 30, 2020.

Fair value measurement of equity securities

Fair value measurement of equity securities of $51.1 million for the six-month period ended June 30, 2021, represents the difference between the aggregate fair value of 1,221,800 ordinary shares of ZIM that we own as at June 30, 2021 of $54.9 million compared to the book value of these shares of $3.8 million as of December 31, 2020. ZIM completed its initial public offering and listing on the New York Stock Exchange of its ordinary shares on January 27, 2021.

Income from Equity Method Investments

During the six-month period ended June 30, 2021, we recorded an income from equity method investments of $5.0 million representing our share of the income in jointly owned companies pursuant to the Framework Deed dated May 15, 2013, as amended and restated (the Framework Deed), with York. Since late March 2021, we have held 100% of the equity interest in five previously jointly owned companies with York, and since then these five companies are consolidated in our consolidated financial statements. As of June 30, 2021, six companies are jointly owned with York (of which, five companies currently own container vessels). During the six-month period ended June 30, 2020, we recorded an income from equity method investments of $8.2 million relating to investments under the Framework Deed.

Loss on Derivative Instruments

The fair value of our ten interest rate derivative instruments and our two cross currency rate swaps which were outstanding as of June 30, 2021 equates to the amount that would be paid by us or to us should those instruments be terminated. As of June 30, 2021, the fair value of these twelve interest rate derivative instruments, in aggregate, amounted to a liability of $11.7 million. The change in the fair value of the interest rate derivative instruments and cross currency rate swaps that qualified for hedge accounting is recorded in Other Comprehensive Income (OCI) and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings and is presented in the same income statement line item as the earnings effect of the hedged item while the change in the fair value of the interest rate derivatives representing hedge components excluded from the assessment of effectiveness are recognized currently in earnings and are presented in Gain/(Loss) on Derivative Instruments. The change in the fair value of the interest rate derivative instruments that did not qualify for hedge accounting is recorded in Gain/(Loss) on Derivative Instruments. For the six-month period ended June 30, 2021, a loss of $1.0 million has been included in OCI and a loss of $0.2 million has been included in Loss on derivative instruments in the consolidated statement of income, resulting from the fair market value change of the interest rate derivative instruments during the six-month period ended June 30, 2021.

Cash Flows

Six-month periods ended June 30, 2021 and 2020

Condensed cash flows Six-month period ended June 30,(Expressed in millions of U.S. dollars) 2020 2021 Net Cash Provided by Operating Activities $ 139.2 $ 175.2 Net Cash Provided by / (Used in) Investing $ 1.6 $ (281.5 )ActivitiesNet Cash Provided by / (Used in) Financing $ (135.5 ) $ 263.3 Activities

Net Cash Provided by Operating Activities

Net cash flows provided by operating activities for the six-month period ended June 30, 2021, increased by $36.0 million to $175.2 million, from $139.2 million for the six-month period ended June 30, 2020. The increase is mainly attributable to increased cash from operations of $54.2 million, to the favorable change in working capital position, excluding the current portion of long-term debt and the accrued charter revenue (representing the difference between cash received in that period and revenue recognized on a straight-line basis) of $8.6 million; partly off-set by increased payments for interest (including swap payments) of $1.4 million during the six-month period ended June 30, 2021 compared to the six-month period ended June 30, 2020 and by increased special survey costs of $2.4 million during the six-month period ended June 30, 2021 compared to the six-month period ended June 30, 2020.

Net Cash Provided by / (Used in) Investing Activities

Net cash used in investing activities was $281.5 million in the six-month period ended June 30, 2021, which mainly consisted of (i) net payments for the acquisition of the 75% equity interest in two companies and of the 51% equity interest in three companies, previously jointly owned with York pursuant to the Framework Deed, (ii) payments for the delivery of two newbuild container vessels, eight secondhand container vessels and one dry bulk vessel, (iii) advance payments for the acquisition of two secondhand container vessels and twelve secondhand dry bulk vessels and (iv) payments for upgrades for certain of our vessels; partly off-set by proceeds we received from the sale of two container vessels.

Net cash provided by investing activities was $1.6 million in the six-month period ended June 30, 2020, which mainly consisted of return of capital we received from nine entities jointly owned with York pursuant to the Framework Deed, the proceeds we received from the sale of one container vessel and advance payments we received from the sale of two container vessels that were classified as vessels held for sale as at June 30, 2020; partly off-set by payments for upgrades for certain of our container vessels and payment for the acquisition of one container secondhand vessel.

Net Cash Provided by / (Used in) Financing Activities

Net cash provided by financing activities was $263.3 million in the six-month period ended June 30, 2021, which mainly consisted of (a) $309.4 million net proceeds relating to our debt financing agreements (including proceeds we received from the issuance of 100.0 million unsecured bond on the Athens Exchange), (b) $18.6 million we paid for dividends to holders of our common stock for the fourth quarter of 2020 and the first quarter of 2021 and (c) $1.9 million we paid for dividends to holders of our Series B Preferred Stock, $4.2 million we paid for dividends to holders of our Series C Preferred Stock, $4.4 million we paid for dividends to holders of our Series D Preferred Stock and $5.1 million we paid for dividends to holders of our Series E Preferred Stock for the period from October 15, 2020 to January 14, 2021 and January 15, 2021 to April 14, 2021.

Net cash used in financing activities was $135.5 million in the six-month period ended June 30, 2020, which mainly consisted of (a) $100.5 million net payments relating to our debt financing agreements, (b) $15.8 million we paid for dividends to holders of our common stock for the fourth quarter of 2019 and the first quarter of 2020 and (c) $1.9 million we paid for dividends to holders of our Series B Preferred Stock, $4.2 million we paid for dividends to holders of our Series C Preferred Stock, $4.4 million we paid for dividends to holders of our Series D Preferred Stock and $5.1 million we paid for dividends to holders of our Series E Preferred Stock for the period from October 15, 2019 to January 14, 2020 and January 15, 2020 to April 14, 2020.

Liquidity and Unencumbered Vessels

Cash and cash equivalents

As of June 30, 2021, we had a total cash liquidity of $348.9 million, consisting of cash, cash equivalents and restricted cash.

Debt-free vessels

As of July 28, 2021, the following vessels were free of debt.

Unencumbered Vessels (Refer to fleet list for full details)

Vessel Name Year TEU / DWT Built CapacityContainerships ETOILE 2005 2,556MICHIGAN 2008 1,300ENSENADA (*) 2001 5,576MONEMVASIA (*) 1998 2,472ARKADIA (*) 2001 1,550Dry Bulk Vessels SEABIRD 2016 63,553

(*) Vessels acquired pursuant to the Framework Deed with York.

Risk Factor Update

The operation of dry bulk vessels entails certain unique operational risks.

The operation of certain ship types, such as dry bulk vessels, has certain unique risks. With a dry bulk vessel, the cargo itself and its interaction with the ship can be a risk factor. By their nature, dry bulk cargoes are often heavy, dense, easily shifted, and react badly to water exposure. In addition, dry bulk vessels are often subjected to battering treatment during unloading operations with grabs, jackhammers (to pry encrusted cargoes out of the hold), and small bulldozers. This treatment may cause damage to the vessel. Vessels damaged due to treatment during unloading procedures may be more susceptible to breach at sea. Furthermore, any defects or flaws in the design of a dry bulk vessel may contribute to vessel damage. Hull breaches in dry bulk vessels may lead to the flooding of the vessels holds. If a dry bulk vessel suffers flooding in its holds, the bulk cargo may become so dense and waterlogged that its pressure may buckle the vessel's bulkheads, leading to the loss of the vessel. If we are unable to adequately maintain our vessels, we may be unable to prevent these events.

Any of these circumstances or events could negatively impact our business, financial condition, results of operations and our ability to pay dividends, if any, in the future. In addition, the loss of any of our dry bulk vessels could harm our reputation as a safe and reliable vessel owner and operator.

Conference Call details:

On Wednesday, 28, 2021 at 8:30 a.m. EST, Costamares management team will hold a conference call to discuss the financial results. Participants should dial into the call 10 minutes before the scheduled time using the following numbers: 1-844-887-9405 (from the US), 0808-238-9064 (from the UK) or +1-412-317-9258 (from outside the US and the UK). Please quote Costamare. A replay of the conference call will be available until August 4, 2021. The United States replay number is +1-877-344-7529; the standard international replay number is +1-412-317-0088; and the access code required for the replay is: 10159093.

Live webcast:There will also be a simultaneous live webcast over the Internet, through the Costamare Inc. website (www.costamare.com). Participants to the live webcast should register on the website approximately 10 minutes prior to the start of the webcast.

About Costamare Inc.

Costamare Inc. is one of the worlds leading owners and providers of containerships for charter. The Company has 47 years of history in the international shipping industry and a fleet of 81 containerships, with a total capacity of approximately 581,000 TEU (including two secondhand vessels that we have agreed to acquire and two vessels that we have agreed to sell) and 37 dry bulk vessels with a total capacity of approximately 1,910,000 DWT (including 23 secondhand vessels that we have agreed to acquire). Five of our containerships have been acquired pursuant to the Framework Deed with York by vessel-owning joint venture entities in which we hold a minority equity interest. The Companys common stock, Series B Preferred Stock, Series C Preferred Stock, Series D Preferred Stock and Series E Preferred Stock trade on the New York Stock Exchange under the symbols CMRE, CMRE PR B, CMRE PR C, CMRE PR D and CMRE PR E, respectively.

Forward-Looking Statements

This earnings release contains forward-looking statements. In some cases, you can identify these statements by forward-looking words such as believe, intend, anticipate, estimate, project, forecast, plan, potential, may, should, could, expect and similar expressions. These statements are not historical facts but instead represent only Costamares belief regarding future results, many of which, by their nature, are inherently uncertain and outside of Costamares control. It is possible that actual results may differ, possibly materially, from those anticipated in these forward-looking statements. For a discussion of some of the risks and important factors that could affect future results, see the discussion in the Companys Annual Report on Form 20-F (File No. 001-34934) under the caption Risk Factors.

Company Contacts:

Gregory Zikos - Chief Financial Officer Konstantinos Tsakalidis - Business Development

Costamare Inc., MonacoTel: (+377) 93 25 09 40Email: ir@costamare.com

Fleet List

The tables below provide additional information, as of July 28, 2021, about our fleet of containerships, including the vessels that we have agreed to acquire, the vessels we have agreed to sell, the vessels acquired pursuant to the Framework Deed and those vessels subject to sale and leaseback agreements. Each vessel is a cellular containership, meaning it is a dedicated container vessel.

Year Capacity Current Daily Charter Expiration of Vessel Name Charterer Built (TEU) Rate^(^1) Charter^(^2) (U.S.dollars)1 TRITON^(^ii) Evergreen 2016 14,424 ^(*) March 20262 TITAN^(^ii) Evergreen 2016 14,424 ^(*) April 20263 TALOS^(^ii) Evergreen 2016 14,424 ^(*) July 20264 TAURUS^(^ii) Evergreen 2016 14,424 ^(*) August 20265 THESEUS^(^ii) Evergreen 2016 14,424 ^(*) August 20266 YM TRIUMPH^(^ Yang Ming 2020 12,690 ^(*) May 2030 ii)7 YM TRUTH^(^ Yang Ming 2020 12,690 ^(*) May 2030 ii)8 YM TOTALITY^ Yang Ming 2020 12,690 ^(*) July 2030 (^ii)9 YM TARGET^(^ Yang Ming 2021 12,690 ^(*) November 2030 ii)10 YM TIPTOP^(^ Yang Ming 2021 12,690 ^(*) March 2031 ii)11 CAPE AKRITAS ZIM/MSC 2016 11,010 34,750/33,000 July 2031^(3)12 CAPE TAINARO MSC 2017 11,010 33,000 April 203113 CAPE KORTIA ZIM/MSC 2017 11,010 34,750/33,000 July 2031^(3)14 CAPE SOUNIO MSC 2017 11,010 33,000 April 203115 CAPE Hapag 2017 11,010 36,650 March 2025 ARTEMISIO Lloyd16 COSCO COSCO/^(^ 2006 9,469 30,900/72,700 April 2025^ GUANGZHOU *) (4)17 COSCO NINGBO COSCO/^(^ 2006 9,469 30,900/72,700 April 2025^ *) (4)18 YANTIAN COSCO 2006 9,469 39,600 February 202419 COSCO HELLAS COSCO 2006 9,469 39,600 February 202420 BEIJING COSCO 2006 9,469 39,600 March 202421 MSC AZOV MSC 2014 9,403 46,300 December 2026 ^(^5^)22 MSC AMALFI MSC 2014 9,403 46,300 March 2027^(^ 6^)23 MSC AJACCIO MSC 2014 9,403 46,300 February 2027 ^(^7^)24 MSC ATHENS^(^ MSC 2013 8,827 45,300 January 2026^ ii) (^8^)25 MSC ATHOS^(^ MSC 2013 8,827 45,300 February 2026 ii) ^(^9^)26 VALOR Hapag 2013 8,827 32,400 April 2025 Lloyd27 VALUE Hapag 2013 8,827 32,400 April 2025 Lloyd28 VALIANT Hapag 2013 8,827 32,400 June 2025 Lloyd29 VALENCE Hapag 2013 8,827 32,400 July 2025 Lloyd30 VANTAGE Hapag 2013 8,827 32,400 September Lloyd 202531 NAVARINO MSC 2010 8,531 31,000 January 202532 MAERSK KLEVEN Maersk 1996 8,044 25,000 June 2023^(^ 10^)33 MAERSK KOTKA Maersk 1996 8,044 25,000 June 2023^(^ 11^)34 MAERSK Maersk 2005 7,471 16,000 June 2022 KOWLOON35 KURE COSCO 1996 7,403 31,000 March 202336 MSC METHONI MSC/Maersk 2003 6,724 29,000/46,500 May 2026^(^12 ^)37 PORTO CHELI Maersk 2001 6,712 30,075 June 202638 YORK Maersk 2000 6,648 21,250 August 202239 KOBE RCL Feeder 2000 6,648 14,500/45,000 July 2025^(^ /ZIM 13^)40 SEALAND Maersk 2000 6,648 25,000 March 2022^(^ WASHINGTON 14^)41 SEALAND Maersk 2000 6,648 25,000 March 2022^(^ MICHIGAN 14^)42 SEALAND Maersk 2000 6,648 25,000 March 2022^(^ ILLINOIS 14^)43 MAERSK Maersk 2003 6,644 25,000 March 2022^(^ KOLKATA 14^)44 MAERSK Maersk 2003 6,644 25,000 March 2022^(^ KINGSTON 14^)45 MAERSK Maersk 2003 6,644 25,000 March 2022^(^ KALAMATA 14^)46 ARIES ONE 2004 6,492 ^(*) December 202247 ARGUS ONE 2004 6,492 ^(*) January 202348 VENETIKO^(^ ^(*) 2003 5,928 ^(*) August 2021 iii)49 PORTO KAGIO Maersk 2002 5,908 28,822 June 202650 GLEN CANYON ONE 2006 5,642 ^(*) January 202251 PORTO GERMENO Maersk 2002 5,570 28,822 June 202652 ENSENADA^(^i ^(*) 2001 5,576 21,500 August 2021 ^)^, (iii)53 ZIM NEW YORK ZIM 2002 4,992 14,438 September 2021 ^(^15^)54 ZIM SHANGHAI ZIM 2002 4,992 14,438 September 2021^(^15^)55 LEONIDIO^(^ Maersk 2014 4,957 14,200 December 2024 ii)56 KYPARISSIA^(^ Maersk 2014 4,957 14,200 November 2024 ii)57 MEGALOPOLIS Maersk 2013 4,957 13,500 July 202558 MARATHOPOLIS Maersk 2013 4.957 13,500 July 202559 OAKLAND Maersk 2000 4,890 24,500 March 202360 NORFOLK Maersk 2009 4,259 30,000 May 202361 VULPECULA OOCL 2010 4,258 22,700 February 202362 VOLANS ZIM 2010 4,258 24,250 April 202463 VIRGO Maersk 2009 4,258 30,200 February 202464 VELA OOCL 2009 4,258 22,700 January 202365 ANDROUSA Maersk 2010 4,256 22,750 May 202366 NEOKASTRO (*)/CMA 2011 4,178 (*)/ 39,000 January 2027^ CGM (16)67 ULSAN Maersk 2002 4,132 34,730 January 2026^ (^1^7^) POLAR68 ARGENTINA^(^i Maersk 2018 3,800 19,700 October 2024 ^)^(ii)69 POLAR BRASIL^ Maersk 2018 3,800 19,700 January 2025 (^i^)^(ii)70 LAKONIA COSCO 2004 2,586 17,300 February 2022 Pool / Pool participation/ January 2023^71 SCORPIUS Hapag 2007 2,572 17,750 (^1^8^) Lloyd72 ETOILE ^(*) 2005 2,556 ^(*) February 202373 AREOPOLIS COSCO 2000 2,474 17,300 March 202274 MONEMVASIA^(^ Maersk 1998 2,472 9,250 November 2021 i^)75 MESSINI ^(*) 1997 2,458 18,000 January 202276 ARKADIA^(^i^) China 2001 1,550 21,500 May 2023 Navigation77 MICHIGAN MSC 2008 1,300 18,700 September 2023^(^1^9^)78 TRADER ^(*) 2008 1,300 ^(*) November 202179 LUEBECK MSC 2001 1,078 15,000 March 2024^(^ 20^)

Containerships agreed to be acquired within 2021

Vessel Year Agreed Daily Vessel Name Capacity Built Charterer Charter Rate Charter Tenor (TEU) (U.S. dollars) COSCO 32 ? 36 months from1 FUKUYAMA 4,578 2009 ZIM 25,500 vessel?s delivery to (tbr. the charterer GIALOVA) CO KOBE 24.5 ? 27.5 months from2 (tbr. 4,578 2008 Maersk 22,750 vessel?s delivery to DYROS) the charterer

Daily charter rates are gross, unless stated otherwise. Amounts set out(1) for current daily charter rate are the amounts contained in the charter contracts.(2) Charter terms and expiration dates are based on the earliest date charters could expire. Upon redelivery of each vessel from ZIM between August 2021 and October(3) 2021, each vessel will commence a charter for a period of approximately 10 years, with MSC at a daily rate of $33,000. Until then the daily charter rate of Cape Akritas and Cape Kortia will be $34,750. Upon redelivery of each vessel from COSCO between April 2022 and June(4) 2022, each vessel will commence a charter for a period of 36 to 39 months at a daily rate of $72,700. Until then the daily charter rate of Cosco Guangzhou and Cosco Ningbo will be $30,900. This charter rate will be earned by MSC Azov until December 2, 2023. From(5) the aforementioned date until the expiry of the charter, the daily rate will be $35,300. This charter rate will be earned by MSC Amalfi until March 16, 2024. From(6) the aforementioned date until the expiry of the charter, the daily rate will be $35,300. This charter rate will be earned by MSC Ajaccio until February 1, 2024.(7) From the aforementioned date until the expiry of the charter, the daily rate will be $35,300. This charter rate will be earned by MSC Athens until January 29, 2023.(8) From the aforementioned date until the expiry of the charter, the daily rate will be $35,300. This charter rate will be earned by MSC Athos until February 24, 2023.(9) From the aforementioned date until the expiry of the charter, the daily rate will be $35,300. The daily rate of Maersk Kleven is a base rate of $17,000, adjusted(10) pursuant to the terms of a 50:50 profit/loss sharing mechanism based on market conditions with a minimum charter rate of $12,000 and a maximum charter rate of $25,000. The daily rate of Maersk Kotka is a base rate of $17,000, adjusted(11) pursuant to the terms of a 50:50 profit/loss sharing mechanism based on market conditions with a minimum charter rate of $12,000 and a maximum charter rate of $25,000. Upon redelivery of MSC Methoni from MSC (expected between September 2021(12) and November 2021), the vessel will commence a charter with Maersk at a daily rate of $46,500. Until then the daily charter rate will be $29,000. Upon redelivery of Kobe from RCL Feeder (expected between August 2021 and(13) November 2021), the vessel will commence a charter with ZIM at a daily rate of $45,000. Until then the daily charter rate will be $14,500. The daily rate for Sealand Washington, Sealand Michigan, Sealand Illinois, Maersk Kolkata, Maersk Kingston and Maersk Kalamata is a base(14) rate of $16,000, adjusted pursuant to the terms of a 50:50 profit/loss sharing mechanism based on market conditions with a minimum charter rate of $12,000 and a maximum charter rate of $25,000. The amounts in the table reflect the current charter terms, giving effect to our agreement with ZIM under its 2014 restructuring plan. Based on this agreement, we have been granted charter extensions and have been issued equity securities representing 1.2% of ZIM?s equity at that time and approximately $8.2 million in interest bearing notes maturing in(15) 2023. In May 2020, the Company exercised its option to extend the charters of ZIM New York and ZIM Shanghai for a one year period at market rate plus $1,100 per day per vessel while the notes remain outstanding. The rate for this sixth optional year has been determined at $14,438 per day. In June 2021, ZIM fully repaid the interest bearing notes and thus the employment of the two vessels will be terminated under the terms of the 2014 restructuring agreement. Upon redelivery of Neokastro from her current charterer (expected between(16) December 2021 and February 2022), the vessel will commence a charter with CMA CGM at a daily rate of $39,000. Until then the daily charter rate will be $24,000.(17) This charter rate will be earned by Ulsan from October 1, 2021. Until then the daily charter rate will be $12,000. Vessel will be participating in a Pool until August 31, 2021. From(18) September 1, 2021, its charter rate will be $17,750 per day, as per its current employment with Hapag Lloyd.(19) This charter rate will be earned by Michigan from October 15, 2021. Until then the daily charter rate will be $5,800.(20) This charter rate will be earned by Luebeck from March 19, 2022. Until then the daily charter rate will be $7,750. (i) Denotes vessels acquired pursuant to the Framework Deed. The Company holds an equity interest of 49% in each of the vessel-owning entities.(ii) Denotes vessels subject to a sale and leaseback transaction.(iii) Denotes vessels that we have agreed to sell. (*) Denotes charterer?s identity and/or current daily charter rates and/or charter expiration dates, which are treated as confidential.

The tables below provide additional information, as of July 28, 2021, about our fleet of dry bulk vessels, including the vessels that we have agreed to acquire.

Vessel Year Capacity Current Daily Charter Rate^(^ Expiration of Name Built (DWT) 1) (U.S.dollars) Charter^(^2)1 BUILDER 2012 81,541 25,000 October 20212 SAUVAN 2010 79,699 30,250 October 20213 DAWN 2018 63,530 10,500 December 2021^(^ 4) (5)4 SEABIRD 2016 63,553 Preparations for Drydock5 ERACLE 2012 58,018 30,000 October 20216 PEGASUS 2011 56,726 26,150 September 20217 PEACE 2006 55,709 28,000 September 20218 PRIDE 2006 55,705 31,000 August 20219 INTERLINK 2012 37,163 100% participation to the March 2022^(3) ^ VERITY BHSI38 performance (4)10 ACUITY 2011 37,149 98.75% participation to the September 2021^ BHSI38 performance (3) (4) (5)11 BERNIS 2011 34,627 25,250 November 202112 MANZANILLO 2010 34,426 8,350 October 2021^(4) (5)13 ADVENTURE 2011 33,755 7,500 December 2021^(4) ^ (5)14 ALLIANCE 2012 33,755 8,150 December 2021^(4) (5)

Dry Bulk vessels agreed to be acquired within 2021

Vessel Name Year Capacity Current Daily Charter Rate Expiration of Built (DWT) ^(^1) (U.S.dollars) Charter^(^2)1 SPRING AEOLIAN 2012 83,478 - - (tbr. AEOLIAN)2 JAIGARH (tbr. 2010 82,166 - - GRENETA)3 PEDHOULAS FARMER 2012 81,541 - - (tbr. FARMER)4 IMPERIAL ROSE (tbr. 2008 76,619 - - ROSE)5 BULK TITAN (tbr. 2009 58,090 - - TITAN)6 STAR ATHENA (tbr. 2012 58,018 - - ATHENA)7 BULK URUGUAY (tbr. 2011 57,937 - - URUGUAY)8 BULK CURACAO (tbr. 2011 57,937 - - CURACAO)9 VIET THUAN 56-01 2009 57,334 - - (tbr. THUNDER)10 SERENE SUSANNAH 2010 57,266 - - (tbr. SERENA)11 ATLANTIC MERIDA 2012 56,670 (tbr. MERIDA)12 LARA (tbr. CLARA) 2008 56,557 - -13 DARYA LAKSHMI (tbr. 2009 55,469 - - BERMONDI)14 INTERLINK COMITY 2010 37,302 100% participation to the July 2022 ^(3) (tbr. COMITY) BHSI38 performance (4)15 INTERLINK PARITY 2012 37,152 102% participation to the December 2022^ (tbr. PARITY) BSHI38 performance (3)16 INTERLINK EQUITY 2013 37,071 - - (tbr. EQUITY)17 N DISCOVERY (tbr. 2012 37,019 - - DISCOVERY)18 JIA TAI (tbr. 2011 35,112 - - TAIBO)19 MS CHARM (tbr. 2010 32,527 91% participation to the February 2022^ CHARM) BSHI38 performance (3) (4)20 ATLANTIC PROGRESS 2011 32,400 - - (tbr. PROGRESS)21 MING YUAN (tbr. 2010 32,300 - - MINER)22 KONSTANTINOS M 2012 32,178 19,500 September 2021 (tbr. KONSTANTINOS) ^(4)23 GREAT RESOURCE 2010 31,776 - - (tbr. RESOURCE)

(1) Daily charter rates are gross, unless stated otherwise.(2) Charter terms and expiration dates are based on the earliest date charters (unless otherwise noted) could expire.(3) Gross daily charter rate linked to the Baltic Exchange Handysize Index.( ?BHSI38??).(4) Vessels acquired/agreed to be acquired, with a time charter agreed by the previous owners.(5) Latest redelivery date

Consolidated Statements of Income

Six-months ended June 30, Three-months ended June 30,(Expressed inthousands ofU.S. dollars, 2020 2021 2020 2021 except shareand per shareamounts) Unaudited REVENUES: Voyage revenue $ 233,273 $ 293,495 $ 111,869 $ 166,770 EXPENSES: Voyage expenses (4,071 ) (3,071 ) (1,553 ) (2,030 )Voyage expenses? related (3,062 ) (4,301 ) (1,475 ) (2,395 )partiesVessels'operating (54,758 ) (69,600 ) (26,888 ) (37,821 )expensesGeneral andadministrative (3,758 ) (3,709 ) (2,356 ) (1,741 )expensesManagement fees- related (10,521 ) (11,786 ) (5,199 ) (6,310 )partiesGeneral andadministrativeexpenses - (1,508 ) (3,207 ) (832 ) (1,768 )non-cashcomponentAmortization ofdry-docking and (4,537 ) (4,847 ) (2,330 ) (2,520 )special surveycostsDepreciation (55,737 ) (58,726 ) (27,601 ) (31,630 )Gain on sale /disposal of 10 1,406 - 1,666 vessels, netLoss on vessels (79,197 ) - (78,965 ) - held for saleVessels? (31,577 ) - (28,506 ) - impairment lossForeignexchange gains (207 ) 146 (65 ) (3 )/ (losses)Operating $ (15,650 ) $ 135,800 $ (63,901 ) $ 82,218 income / (loss) OTHER INCOME / (EXPENSES):Interest income $ 1,087 $ 1,489 $ 440 $ 1,122 Interest and (35,367 ) (36,548 ) (16,900 ) (20,441 )finance costsIncome fromequity method 8,241 4,951 4,077 960 investmentsFair valuemeasurement /Change in fair - 51,094 - 25,157 value of equitysecuritiesOther 308 2,983 (120 ) 1,495 Gain / (Loss)on derivative (2,066 ) (1,012 ) 181 105 instrumentsTotal other $ (27,797 ) $ 22,957 $ (12,322 ) $ 8,398 expensesNet Income / $ (43,447 ) $ 158,757 $ (76,223 ) $ 90,616 (Loss)Earningsallocated to (15,461 ) (15,448 ) (7,768 ) (7,854 )Preferred StockGain onretirement of 619 - 78 - Preferred StockNet Income /(Loss)available to $ (58,289 ) $ 143,309 $ (83,913 ) $ 82,762 commonstockholders Earnings /(Losses) percommon share, $ (0.49 ) $ 1.17 $ (0.70 ) $ 0.67 basic anddilutedWeightedaverage numberof shares, 119,927,560 122,615,427 120,319,180 122,844,260 basic anddiluted

COSTAMARE INC.Consolidated Balance Sheets

As of As of June December 30, 31,(Expressed in thousands of U.S. dollars) 2020 2021 ASSETS (Audited) (Unaudited)CURRENT ASSETS: Cash and cash $ 143,922 $ 279,055 equivalentsRestricted cash 4,998 6,980 Accounts receivable 8,249 7,063 Inventories 10,455 13,909 Due from related parties 1,623 535 Fair value of derivatives 460 - Insurance claims receivable 883 804 Asset held for sale 12,416 61,389 Time charter assumed 191 198 Investment in equity securities - 54,895 Prepayments and other 8,853 6,610 Total current assets $ 192,050 $ 431,438 FIXED ASSETS, NET: Right-of-use assets $ 199,098 $ 195,233 Vessels and advances, net 2,450,510 3,169,135 Total fixed assets, net $ 2,649,608 $ 3,364,368 NON-CURRENT ASSETS: Equity method investments $ 78,227 $ 27,154 Deferred charges, net 27,682 34,761 Accounts receivable, non-current 3,896 3,326 Restricted cash 42,976 62,896 Fair value of derivatives, non-current - 70 Time charter assumed, non-current 839 767 Debt securities, held to maturity (Net of allowance for credit losses of 6,813 - $569 as of December 31, 2020)Other non-current assets 8,425 3,418 Total assets $ 3,010,516 $ 3,928,198 LIABILITIES AND STOCKHOLDERS? EQUITY CURRENT LIABILITIES: Current portion of long-term debt $ 147,137 $ 210,610 Accounts payable 7,582 14,360 Due to related parties 432 1,768 Finance lease liabilities 16,495 16,584 Accrued liabilities 17,621 20,142 Unearned revenue 11,893 11,824 Fair value of derivatives 3,440 8,686 Other current liabilities 2,374 56,818 Total current liabilities $ 206,974 $ 340,792 NON-CURRENT LIABILITIES Long-term debt, net of current portion $ 1,305,076 $ 1,968,401 Finance lease liabilities, net of current portion 116,366 108,063 Fair value of derivatives, net of current portion 3,653 3,483 Unearned revenue, net of current portion 29,627 31,774 Total non-current liabilities $ 1,454,722 $ 2,111,721 COMMITMENTS AND CONTINGENCIES STOCKHOLDERS? EQUITY: Preferred stock $ - $ - Common stock 12 12 Additional paid-in capital 1,366,486 1,375,559 Retained earnings / (Accumulated deficit) (9,721 ) 109,019 Accumulated other comprehensive loss (7,957 ) (8,905 )Total stockholders? equity $ 1,348,820 $ 1,475,685 Total liabilities and stockholders? equity $ 3,010,516 $ 3,928,198