VII.   LEASE FINANCING PLATFORM

• Controlling interest in Neptune Maritime Leasing Limited (“NML”).

• Company’s current investment in NML of $123.3 million.

• Growing leasing platform, having funded 25 shipping assets as of the date of this press release, for a total amount of approximately $285 million, on the back of what we believe is a healthy pipeline.

VIII.   DIVIDEND ANNOUNCEMENTS

• On July 1, 2024, the Company declared a dividend of $0.115 per share on the common stock, which will be paid on August 6, 2024, to holders of record of common stock as of July 19, 2024.
  

• On July 1, 2024, the Company declared a dividend of $0.476563 per share on the Series B Preferred Stock, $0.531250 per share on the Series C Preferred Stock, $0.546875 per share on the Series D Preferred Stock and $0.554688 per share on the Series E Preferred Stock, which were all paid on July 15, 2024 to holders of record as of July 12, 2024.

• Available funds remaining under the share repurchase program of approximately $30 million for common shares and $150 million for preferred shares.

__________________

^{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 Costamare’s 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.}
2 _{Including our share of cash amounting to $0.1 million held by vessel owning-companies set-up pursuant to the Framework Deed dated May 15, 2013, as amended and restated from time to time (the “Framework Deed”), between the Company and York Capital Management Global Advisors LLC and an affiliated fund (collectively, “York Capital”), margin deposits relating to our forward freight agreements (“FFAs”) and bunker swaps of $10.8 million, short term investments in U.S. Treasury Bills amounting to $18.0 million and $115.8 million of available undrawn funds from two hunting license facilities as of June 30, 2024.}
3 _{Please refer to the Containership Fleet List table for additional information on vessel employment details for our containership fleet.}
4 _{Calculated on a TEU basis.}
5 _{As of July 30, 2024.}}

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

“During the second quarter of the year, the Company generated Net Income of about $91 million. As of quarter end, liquidity was above $1.1 billion.

In the containership sector, continued vessel diversions around Africa and an early peak season, with higher than expected cargo demand, have resulted in charter rates remaining on an upward trajectory against a backdrop of short supply of prompt tonnage.

During the quarter, we chartered on a forward basis seven containerships for a minimum period of between 2 to 3 years. The new charter agreements are expected to generate incremental contracted revenues of above $220 million.

The containership fleet employment stands at 100% and 88% for 2024 and 2025, respectively, and total contracted revenues amount to $2.4 billion with a remaining time charter duration of 3.5 years.

On the dry bulk side, we progress with our strategy to renew the owned fleet and increase its average size having concluded the sale of one 2011-built Handysize and agreed the sale of one 2009-built Supramax vessel while simultaneously acquiring two 2012-built Capesize ships.

CBI, our dry bulk trading platform, is commercially managing a fleet of 54 ships, the majority of which are on index-linked charter in agreements. As mentioned in the past, we have a long-term commitment to the sector, which has been a strategic decision for us.

Finally, with regards to Neptune Maritime Leasing, the platform has been steadily growing, having currently funded 25 shipping assets for a total amount of approximately $285 million on the back of a healthy pipeline.”

(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. The reverse is true for charters with descending rates.
(2) Total 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, Total voyage revenue adjusted on a cash basis is not a recognized measurement under U.S. GAAP. We believe that the presentation of Total 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 of our fleet are described in the notes to the “Fleet List” tables 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 and Adjusted Earnings per Share.

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 Company’s performance. The tables below set out supplemental financial data and corresponding reconciliations to GAAP financial measures for the three-month and the six-month periods ended June 30, 2024 and 2023. 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

Adjusted Net Income available to common stockholders and Adjusted Earnings per Share represent Net Income after earnings allocated to preferred stock, deemed dividend of Series E Preferred Stock and Non-Controlling Interest, but before non-cash “Accrued charter revenue” recorded under charters with escalating or descending charter rates, deferred charter-in expense, amortization of time-charter assumed, loss on vessel held for sale, realized gain on Euro/USD forward contracts, gain on sale of vessels, net, loss on sale of vessels, net, by jointly owned companies with York Capital included in equity gain on investments, non-recurring, non-cash write-off of loan deferred financing costs, general and administrative expenses - non-cash component, (gain)/loss on derivative instruments, excluding realized (gain)/loss on derivative instruments and other 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, 2024 compared to the three-month period ended June 30, 2023

During the three-month periods ended June 30, 2024 and 2023, we had an average of 104.7 and 110.1 vessels, respectively, in our owned fleet. In addition, during the three-month periods ended June 30, 2024 and 2023, through our dry bulk operating platform Costamare Bulkers Inc. (“CBI”) we chartered-in an average of 59.2 and 42.5 third party dry bulk vessels, respectively. As of July 30, 2024, CBI charters-in 54 dry bulk vessels on period charters.

During the three-month period ended June 30, 2024, we took delivery of the dry bulk vessel Prosper with a DWT of 179,895 and we sold the dry bulk vessel Adventure with a DWT of 33,755.

During the three-month period ended June 30, 2023, we (i) sold our 49% equity interest in the company owning the 2018-built, 3,800 TEU capacity containership, Polar Argentina to York Capital and (ii) acquired the 51% equity interest of York Capital in the 2018-built, 3,800 TEU capacity containership, Polar Brasil, and as a result, we obtained 100% of the equity interest in the vessel. Furthermore, during the three-month period ended June 30, 2023, we sold the dry bulk vessels Taibo and Comity with an aggregate DWT of 72,414.

As of June 30, 2024, we have invested in NML the amount of $123.3 million. NML has been included in our consolidated financial statements since the second quarter of 2023.

In the three-month periods ended June 30, 2024 and 2023, our fleet ownership days totaled 9,528 and 10,020 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⁾

⁽¹⁾ Total voyage revenue adjusted on a cash basis is not a recognized measurement under U.S. generally accepted accounting principles (“GAAP”). Refer to “Consolidated Financial Results and Vessels’ Operational Data” above for the reconciliation of Total voyage revenue adjusted on a cash basis.

Total Voyage Revenue

Total voyage revenue increased by 39.2%, or $143.4 million, to $509.3 million during the three-month period ended June 30, 2024, from $365.9 million during the three-month period ended June 30, 2023. The increase is mainly attributable to (i) increased revenue earned by CBI due to increased volume of its operations period over period, (ii) revenue earned by two container vessels acquired during the second and fourth quarter of 2023, respectively, two dry bulk vessels acquired during the third quarter of 2023, one dry bulk vessel acquired during the first quarter of 2024 and one dry bulk vessel acquired during the second quarter of 2024, (iii) increased charter rates in certain of our dry bulk vessels in the second quarter of 2024 compared to the second quarter of 2023, and (iv) decreased fleet off-hire and idle days in the second quarter of 2024 compared to the second quarter of 2023; partly offset by revenue not earned by one container vessel and four dry bulk vessels sold during the year ended 2023 and seven dry bulk vessels sold during the first half of 2024.

Total voyage revenue adjusted on a cash basis (which eliminates non-cash “Accrued charter revenue”) increased by 37.7%, or $139.1 million, to $507.8 million during the three-month period ended June 30, 2024, from $368.7 million during the three-month period ended June 30, 2023. Accrued charter revenue for the three-month periods ended June 30, 2024 and 2023 was a negative amount of $1.3 million and a positive amount of $2.8 million, respectively.

Income from investments in leaseback vessels

Income from investments in leaseback vessels was $6.2 million and $1.5 million for the three-month periods ended June 30, 2024 and 2023, respectively. Income from investments in leaseback vessels increased, period over period, due to the increased volume of NML’s operations during the three-month period ended June 30, 2024 compared to the three-month period ended June 30, 2023. NML acquires, owns and bareboat charters out vessels through its wholly-owned subsidiaries.

Voyage Expenses

Voyage expenses were $89.1 million and $69.4 million for the three-month periods ended June 30, 2024 and 2023, respectively. Voyage expenses increased, period over period, mainly due to CBI’s increased volume of operations during the three-month period ended June 30, 2024 compared to the three-month period ended June 30, 2023. Voyage expenses mainly include (i) fuel consumption mainly related to dry bulk vessels, (ii) third-party commissions, (iii) port expenses and (iv) canal tolls.

Charter-in Hire Expenses

Charter-in hire expenses were $164.2 million and $74.6 million for the three-month periods ended June 30, 2024 and 2023, respectively. Charter-in hire expenses are expenses relating to chartering-in of third-party dry bulk vessels under charter agreements through CBI.

Voyage Expenses – related parties

Voyage expenses – related parties were $4.6 million and $3.4 million for the three-month periods ended June 30, 2024 and 2023, respectively. Voyage expenses – related parties represent (i) fees of 1.25%, in the aggregate, on voyage revenues earned by our owned fleet charged by a related manager and a related service provider, (ii) charter brokerage fees (in respect of our container vessels) payable to two related charter brokerage companies for an amount of approximately $0.4 million and $0.3 million, in the aggregate, for the three-month periods ended June 30, 2024 and 2023, respectively and (iii) address commission on certain charter-out agreements payable to a related agent (since the second quarter of 2024). This commission is subsequently paid in full on a back-to-back basis by the related agent to its respective third-party clients with no benefit for the related agent.

Vessels’ Operating Expenses

Vessels’ operating expenses, which also include the realized gain/(loss) under derivative contracts entered into in relation to foreign currency exposure, were $60.6 million and $62.9 million during the three-month periods ended June 30, 2024 and 2023, respectively. Daily vessels’ operating expenses were $6,361 and $6,281 for the three-month periods ended June 30, 2024 and 2023, 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 $5.7 million and $4.1 million during the three-month periods ended June 30, 2024 and 2023, respectively, and include amounts of $0.67 million and $0.67 million, respectively, that were paid to a related service provider.

Management and Agency Fees – related parties

Management fees charged by our related party managers were $10.6 million and $11.0 million during the three-month periods ended June 30, 2024 and 2023, respectively. The amounts charged by our related party managers include amounts paid to third party managers of $2.5 million and $3.5 million for the three-month periods ended June 30, 2024 and 2023, respectively. Furthermore, during the three-month periods ended June 30, 2024 and 2023, agency fees of $4.1 million and $3.9 million, in aggregate, were charged by four and three related agents, respectively, in connection with the operations of CBI.

General and Administrative Expenses - non-cash component

General and administrative expenses - non-cash component for the three-month period ended June 30, 2024 amounted to $2.5 million, representing the value of the shares issued to a related service provider on June 28, 2024. General and administrative expenses - non-cash component for the three-month period ended June 30, 2023 amounted to $1.4 million, representing the value of the shares issued to a related service provider on June 30, 2023.

Amortization of Dry-Docking and Special Survey Costs

Amortization of deferred dry-docking and special survey costs was $5.7 million and $4.7 million during the three-month periods ended June 30, 2024 and 2023, respectively. During the three-month period ended June 30, 2024, three vessels underwent and completed their dry-docking and special survey and one vessel was in the process of completing her dry-docking and special survey. During the three-month period ended June 30, 2023, one vessel underwent and completed her dry-docking and special survey and two vessels were in the process of completing their dry-docking and special survey.

Depreciation

Depreciation expense for the three-month periods ended June 30, 2024 and 2023 was $40.5 million and $41.3 million, respectively.

Gain on Sale of Vessels, net

During the three-month period ended June 30, 2024, we recorded a gain of $2.4 million from the sale of the dry bulk vessel Adventure, which was classified as a vessel held for sale as of March 31, 2024. During the three-month period ended June 30, 2023, we recorded an aggregate net gain of $31.3 million from (i) the sale of the dry bulk vessel Taibo, which was classified as vessel held for sale as of March 31, 2023, (ii) the sale of the dry bulk vessel Comity and (iii) the result of the accounting classification of the container vessels Vela and Vulpecula as “Net investment in sale type lease (Vessels)”.

Loss on Vessels Held for Sale

During the three-month period ended June 30, 2024, we recorded a loss on vessels held for sale of $2.3 million representing the expected loss from the sale of the dry bulk vessel Oracle during the next twelve-month period.

Interest Income

Interest income amounted to $9.2 million and $9.7 million for the three-month periods ended June 30, 2024 and 2023, respectively.

Interest and Finance Costs

Interest and finance costs were $34.0 million and $36.5 million during the three-month periods ended June 30, 2024 and 2023, respectively. The decrease is mainly attributable to the decreased interest expense due to a lower average loan balance during the three-month period ended June 30, 2024, compared to the three-month period ended June 30, 2023.

Income from Equity Method Investments

Income from equity method investments for the three-month period ended June 30, 2024, was nil (compared to income of $0.2 million for the three-month period ended June 30, 2023) representing our share of the gain in the jointly owned companies set up pursuant to the Framework Deed. During the three-month period ended June 30, 2023, we (i) sold our 49% equity interest in the company owning the 2018-built, 3,800 TEU capacity containership, Polar Argentina to York Capital and (ii) acquired the 51% equity interest of York Capital in the 2018-built, 3,800 TEU capacity containership Polar Brasil, and as a result, we obtained 100% of the equity interest in the vessel. As of June 30, 2024 and 2023, two and three companies, respectively, were jointly owned pursuant to the Framework Deed out of which nil and two companies, respectively, owned container vessels.

Loss on Derivative Instruments, net

As of June 30, 2024, we hold derivative financial instruments that qualify for hedge accounting and derivative financial instruments that do not qualify for hedge accounting. The change in the fair value of each derivative instrument that qualifies for hedge accounting is recorded in “Other Comprehensive Income” (“OCI”). The change in the fair value of each derivative instrument that does not qualify for hedge accounting is recorded in the consolidated statements of income.

As of June 30, 2024, the fair value of these instruments, in aggregate, amounted to a net asset of $70.9 million. During the three-month period ended June 30, 2024, a net gain of $0.2 million has been included in OCI and a net loss of $1.6 million has been included in Loss on Derivative Instruments, net.

Cash Flows
Three-month periods ended June 30, 2024 and 2023

Net Cash Provided by Operating Activities

Net cash flows provided by operating activities for the three-month period ended June 30, 2024, increased by $80.7 million to $147.0 million, from $66.3 million for the three-month period ended June 30, 2023. The increase is mainly attributable 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), the increased net cash from operations during the three-month period ended June 30, 2024 compared to the three-month period ended June 30, 2023, the decrease in interest payments (including interest derivatives net receipts) during the three-month period ended June 30, 2024 compared to the three-month period ended June 30, 2023 and the decreased dry-docking and special survey costs during the three-month period ended June 30, 2024 compared to the three-month period ended June 30, 2023.

Net Cash Used in Investing Activities

Net cash used in investing activities was $52.5 million in the three-month period ended June 30, 2024, which mainly consisted of (i) payment for the acquisition of the secondhand dry bulk vessel Prosper, (ii) the advance payment for the acquisition of the secondhand dry bulk vessel Frontier, (iii) payments for upgrades for certain of our container and dry bulk vessels and (iv) payments for net investments into which NML entered; partly off-set by proceeds we received from the sale of the dry-bulk vessel Adventure.

Net cash used in investing activities was $77.2 million in the three-month period ended June 30, 2023, which mainly consisted of (i) payments for the purchase of short-term investments in US Treasury Bills, (ii) payments for upgrades for certain of our container and dry bulk vessels, (iii) an advance payment for the acquisition of one secondhand dry bulk vessel and (iv) payments for net investments into which NML entered partly offset by the proceeds we received from the sale of the dry bulk vessels Taibo and Comity and the maturity of part of our short-term investments in US Treasury Bills.

Net Cash Used in Financing Activities

Net cash used in financing activities was $90.8 million in the three-month period ended June 30, 2024, which mainly consisted of (a) $72.6 million net payments relating to our debt financing agreements and finance lease liability agreement (including proceeds of $34.3 million we received from two debt financing agreements), (b) $9.3 million we paid for dividends to holders of our common stock for the first quarter of 2024 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, 2024 to April 14, 2024.

Net cash used in financing activities was $158.4 million in the three-month period ended June 30, 2023, which mainly consisted of (a) $90.8 million net payments relating to our debt financing agreements (including proceeds of $158.9 million we received from three debt financing agreements), (b) $31.2 million we paid for the re-purchase of 3.5 million of our common shares, (c) $10.0 million we paid for dividends to holders of our common stock for the first quarter of 2023 and (d) $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, 2023 to April 14, 2023.

Results of Operations

Six-month period ended June 30, 2024 compared to the six-month period ended June 30, 2023

During the six-month periods ended June 30, 2024 and 2023, we had an average of 106.3 and 111.4 vessels, respectively, in our owned fleet. In addition, during the six-month periods ended June 30, 2024 and 2023, through CBI we chartered-in an average of 58.1 and 26.8 third-party dry bulk vessels, respectively. As of July 30, 2024, CBI has chartered-in 54 dry bulk vessels on period charters.

During the six-month period ended June 30, 2024, we took delivery of the dry bulk vessels Miracle and Prosper with an aggregate DWT of 360,538 and we sold the dry bulk vessels Manzanillo, Progress, Konstantinos, Merida, Alliance, Pegasus and Adventure with an aggregate DWT capacity of 279,906.

During the six-month period ended June 30, 2023, we (i) sold our 49% equity interest in the company owning the 2018-built, 3,800 TEU capacity containership, Polar Argentina to York Capital and (ii) acquired the 51% equity interest of York Capital in the 2018-built, 3,800 TEU capacity containership Polar Brasil, and as a result, we obtained 100% of the equity interest in the vessel. Furthermore, during the six-month period ended June 30, 2023, we sold the container vessels Maersk Kalamata and Sealand Washington with an aggregate TEU capacity of 13,292 and the dry bulk vessels Miner, Taibo and Comity with an aggregate DWT of 104,714.

As of June 30, 2024, we have invested in NML the amount of $123.3 million. NML has been included in our consolidated financial statements since the second quarter of 2023.

In the six-month periods ended June 30, 2024 and 2023, our fleet ownership days totaled 19,348 and 20,163 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⁾

⁽¹⁾ Total voyage revenue adjusted on a cash basis is not a recognized measurement under U.S. generally accepted accounting principles (“GAAP”). Refer to “Consolidated Financial Results and Vessels’ Operational Data” above for the reconciliation of Total voyage revenue adjusted on a cash basis.

Total Voyage Revenue

Total voyage revenue increased by 59.3%, or $364.8 million, to $979.5 million during the six-month period ended June 30, 2024, from $614.7 million during the six-month period ended June 30, 2023. The increase is mainly attributable to (i) increased revenue earned by CBI due to the increased volume of its operations period over period, (ii) increased charter rates in certain of our owned container and dry bulk vessels and (iii) revenue earned by two container vessels acquired during the second and fourth quarter of 2023, respectively, two dry bulk vessels acquired during the third quarter of 2023 and one dry bulk vessel acquired during the second quarter of 2024, (iv) decreased fleet off-hire and idle days in the first half of 2024 compared to the first half of 2023; partly offset by revenue not earned by one container vessel and six dry bulk vessels sold during the year ended 2023 and seven dry bulk vessels sold during the first half of 2024.

Total voyage revenue adjusted on a cash basis (which eliminates non-cash “Accrued charter revenue”) increased by 59.1%, or $363.6 million, to $978.8 million during the six-month period ended June 30, 2024, from $615.2 million during the six-month period ended June 30, 2023. Accrued charter revenue for the six-month periods ended June 30, 2024 and 2023 was a negative amount of $0.6 million and a positive amount of $0.5 million, respectively.

Income from investments in leaseback vessels

Income from investments in leaseback vessels was $11.4 million and $1.5 million for the six-month periods ended June 30, 2024 and 2023, respectively. Increased income from investments in leaseback vessels, period over period, is attributable to the income earned from NML’s operations for the entire first half of 2024 (in 2023, we earned income from NML’s operations starting from the second quarter of 2023) along with the increased volume of NML’s operations during the first half of 2024 compared to the first half of 2023. NML acquires, owns and bareboat charters out vessels through its wholly-owned subsidiaries.

Voyage Expenses

Voyage expenses were $184.4 million and $101.0 million for the six-month periods ended June 30, 2024 and 2023, respectively. Voyage expenses increased, period over period, mainly due to CBI’s increased volume of operations during the six-month period ended June 30, 2024 compared to the six-month period ended June 30, 2023. Voyage expenses mainly include (i) fuel consumption mainly related to dry bulk vessels, (ii) third-party commissions, (iii) port expenses and (iv) canal tolls.

Charter-in Hire Expenses

Charter-in hire expenses were $308.6 million and $87.0 million for the six-month periods ended June 30, 2024 and 2023, respectively. Charter-in hire expenses are expenses relating to chartering-in of third-party dry bulk vessels under charter agreements through CBI.

Voyage Expenses – related parties

Voyage expenses – related parties were $8.3 million and $6.6 million for the six-month periods ended June 30, 2024 and 2023, respectively. Voyage expenses – related parties represent (i) fees of 1.25%, in the aggregate, on voyage revenues earned by our owned fleet charged by a related manager and a related service provider, (ii) charter brokerage fees (in respect of our container vessels) payable to two related charter brokerage companies for an amount of approximately $0.7 million and $0.7 million, in the aggregate, for the six-month periods ended June 30, 2024 and 2023, respectively and (iii) address commissions on certain charter-out agreements payable to a related agent (since the second quarter of 2024). This commission is subsequently paid in full on a back-to-back basis by the related agent to its respective third-party clients with no benefit for the related agent.

Vessels’ Operating Expenses

Vessels’ operating expenses, which also include the realized gain/(loss) under derivative contracts entered into in relation to foreign currency exposure, were $120.3 million and $130.6 million during the six-month periods ended June 30, 2024 and 2023, respectively. Daily vessels’ operating expenses were $6,216 and $6,478 for the six-month periods ended June 30, 2024 and 2023, 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 $10.9 million and $8.5 million during the six-month periods ended June 30, 2024 and 2023, respectively, and include amounts of $1.3 million and $1.3 million, respectively, that were paid to a related service provider.

Management and Agency Fees – related parties

Management fees charged by our related party managers were $22.0 million and $21.7 million during the six-month periods ended June 30, 2024 and 2023, respectively. The amounts charged by our related party managers include amounts paid to third party managers of $6.0 million and $7.0 million for the six-month periods ended June 30, 2024 and 2023, respectively. Furthermore, during the six-month periods ended June 30, 2024 and 2023, agency fees of $7.3 million and $8.4 million, in aggregate, were charged by four and three related agents, respectively, in connection with the operations of CBI.

General and Administrative Expenses – non-cash component

General and administrative expenses - non-cash component for the six-month period ended June 30, 2024 amounted to $4.2 million, representing the value of the shares issued to a related service provider on March 29, 2024 and June 28, 2024. General and administrative expenses – non-cash component for the six-month period ended June 30, 2023 amounted to $2.9 million, representing the value of the shares issued to a related service provider on March 30, 2023 and June 30, 2023.

Amortization of Dry-Docking and Special Survey Costs

Amortization of deferred dry-docking and special survey costs was $11.3 million and $9.4 million during the six-month periods ended June 30, 2024 and 2023, respectively. During the six-month period ended June 30, 2024, five vessels underwent and completed their dry-docking and special survey, and one vessel was in the process of completing her dry-docking and special survey. During the six-month period ended June 30, 2023, 10 vessels underwent and completed their dry-docking and special survey, and two vessels were in the process of completing their dry-docking and special survey.

Depreciation

Depreciation expense for the six-month periods ended June 30, 2024 and 2023 was $81.0 million and $82.4 million, respectively.

Gain on Sale of Vessels, net

During the six-month period ended June 30, 2024, we recorded a net gain of $3.4 million from (i) the sale of the dry bulk vessels Manzanillo, Progress and Konstantinos, each of which was classified as a vessel held for sale as of December 31, 2023, (ii) the sale of the dry-bulk vessels Merida, Alliance and Pegasus and (iii) the sale of the dry bulk vessel Adventure which was classified as a vessel held for sale as of March 31, 2024 (initially classified as vessels held for sale as of December 31, 2023). During the six-month period ended June 30, 2023, we recorded an aggregate net gain of $118.0 million from (i) the sale of the container vessels Maersk Kalamata and Sealand Washington, which were classified as vessels held for sale as of December 31, 2022 (initially classified as vessels held for sale as of March 31, 2022), (ii) the sale of the dry bulk vessel Taibo, which was classified as a vessel held for sale as of March 31, 2023, (iii) the sale of the dry bulk vessels Miner and Comity and (iv) the result of the accounting classification of the container vessels Vela and Vulpecula as “Net investment in Sale type lease (Vessels)”.

Vessels Held for Sale

During the six-month period ended June 30, 2024, we recorded a loss on vessels held for sale of $2.3 million representing the expected loss from the sale of the dry bulk vessel Oracle during the next twelve-month period.

Interest Income

Interest income amounted to $17.6 million and $16.4 million for the six-month periods ended June 30, 2024 and 2023, respectively.

Interest and Finance Costs

Interest and finance costs were $67.0 million and $73.3 million during the six-month periods ended June 30, 2024 and 2023, respectively. The decrease is mainly attributable to the decreased interest expense due to lower average loan balance during the six-month period ended June 30, 2024, compared to the six-month period ended June 30, 2023.

Loss from Equity Method Investments

Income from equity method investments for the six-month period ended June 30, 2024, was $0.04 million (loss of $1.1 million for the six-month period ended June 30, 2023) representing our share of the loss in jointly owned companies set up pursuant to the Framework Deed. During the six-month period ended June 30, 2023, we (i) sold our 49% equity interest in the company owning the 2018-built, 3,800 TEU capacity containership, Polar Argentina to York Capital and (ii) acquired the 51% equity interest of York Capital in the 2018-built, 3,800 TEU capacity containership Polar Brasil and as a result we obtained 100% of the equity interest in the vessel. As of June 30, 2024 and 2023 two and three companies, respectively, were jointly owned pursuant to the Framework Deed out of which nil and two companies, respectively, owned container vessels.

Gain/ (Loss) on Derivative Instruments, net

As of June 30, 2024, we hold derivative financial instruments that qualify for hedge accounting and derivative financial instruments that do not qualify for hedge accounting. The change in the fair value of each derivative instrument that qualifies for hedge accounting is recorded in “Other Comprehensive Income” (“OCI”). The change in the fair value of each derivative instrument that does not qualify for hedge accounting is recorded in the consolidated statements of income.

As of June 30, 2024, the fair value of these instruments, in aggregate, amounted to a net asset of $70.9 million. During the six-month period ended June 30, 2024, a net gain of $5.6 million has been included in OCI and a net gain of $21.8 million has been included in Gain / (Loss) on Derivative Instruments, net.

Cash Flows
Six-month periods ended June 30, 2024 and 2023

Net Cash Provided by Operating Activities

Net cash flows provided by operating activities for the six-month period ended June 30, 2024, increased by $181.4 million to $285.0 million, from $103.6 million for the six-month period ended June 30, 2023. The increase is mainly attributable 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), the increased net cash from operations during the six-month period ended June 30, 2024 compared to the six-month period ended June 30, 2023, the decrease in interest payments (including interest derivatives net receipts) during the six-month period ended June 30, 2024 compared to the six-month period ended June 30, 2023 and the decreased dry-docking and special survey costs during the six-month period ended June 30, 2024 compared to the six-month period ended June 30, 2023.

Net Cash Provided by / (Used in) Investing Activities

Net cash used in investing activities was $18.0 million in the six-month period ended June 30, 2024, which mainly consisted of (i) a settlement payment for the delivery of the secondhand dry bulk vessel Miracle, (ii) a payment for the acquisition of the secondhand dry bulk vessel Prosper, (iii) an advance payment for the acquisition of the secondhand dry bulk vessel Frontier, (iv) payments for upgrades for certain of our container and dry bulk vessels and (v) payments for net investments into which NML entered; partly off-set by proceeds we received from the sale of the dry-bulk vessels Manzanillo, Progress, Konstantinos, Merida, Alliance, Pegasus and Adventure.

Net cash provided by investing activities was $114.0 million in the six-month period ended June 30, 2023, which mainly consisted of proceeds we received from (i) the sale of the container vessels Sealand Washington and Maersk Kalamata and the dry bulk vessels Miner, Taibo and Comity and (ii) the maturity of part of our short-term investments in US Treasury Bills; partly offset by payments for the purchase of short-term investments in US Treasury Bills, payments for upgrades for certain of our container and dry bulk vessels, an advance payment for the acquisition of one secondhand dry bulk vessel and payments for net investments into which NML entered.

Net Cash Used in Financing Activities 

Net cash used in financing activities was $118.8 million in the six-month period ended June 30, 2024, which mainly consisted of (a) $82.3 million net payments relating to our debt financing agreements and finance lease liability agreement (including proceeds of $145.8 million we received from 10 debt financing agreements), (b) $18.6 million we paid for dividends to holders of our common stock for the fourth quarter of 2023 and the first quarter of 2024 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, 2023 to January 14, 2024 and January 15, 2024 to April 14, 2024.

Net cash used in financing activities was $253.0 million in the six-month period ended June 30, 2023, which mainly consisted of (a) $165.0 million net payments relating to our debt financing agreements (including proceeds of $481.8 million we received from four debt financing agreements), (b) $31.2 million we paid for the re-purchase of 3.5 million of our common shares, (c) $20.3 million we paid for dividends to holders of our common stock for the fourth quarter of 2022 and the first quarter of 2023 and (d) $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, 2022 to January 14, 2023 and January 15, 2023 to April 14, 2023.

Liquidity and Unencumbered Vessels

Cash and cash equivalents

As of June 30, 2024, we had Cash and cash equivalents (including restricted cash) of $973.5 million, $18.0 million invested in short-dated US Treasury Bills (short-term investments) and $10.8 million margin deposits in relation to our FFAs and bunker swaps. Furthermore, as of June 30, 2024, our liquidity stood at approximately $1,118.3 million including (a) our share of cash amounting to $0.1 million held in joint venture companies set up pursuant to the Framework Deed and (b) $115.8 million of available undrawn funds from two hunting license facilities.

Debt-free vessels

As of July 30, 2024, the following vessels were free of debt.

Conference Call details:

On Wednesday, July 31, 2024 at 8:30 a.m. ET, Costamare’s 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 7, 2024. 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: 1199633.

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 world’s leading owners and providers of containerships and dry bulk vessels for charter. The Company has 50 years of history in the international shipping industry and a fleet of 68 containerships, with a total capacity of approximately 513,000 TEU and 38 owned dry bulk vessels with a total capacity of approximately 2,830,000 DWT (including one vessel we have agreed to sell). The Company also has a dry bulk operating platform which charters in/out dry bulk vessels, enters into contracts of affreightment, forward freight agreements and may also utilize hedging solutions. The Company participates in a leasing business that provides financing to third-party owners. The Company’s common stock, Series B Preferred Stock, Series C Preferred Stock and Series D Preferred Stock trade on the New York Stock Exchange under the symbols “CMRE”, “CMRE PR B”, “CMRE PR C” and “CMRE PR D”, 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 Costamare’s belief regarding future results, many of which, by their nature, are inherently uncertain and outside of Costamare’s 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 Company’s 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., Monaco
Tel: (+377) 93 25 09 40
Email: [email protected]

Containership Fleet List

The table below provides additional information, as of July 30, 2024, about our fleet of containerships, and those vessels subject to sale and leaseback agreements. Each vessel is a cellular containership, meaning it is a dedicated container vessel.

(*)   Denotes charterer’s identity and/or current daily charter rates and/or charter expiration dates, which are treated as confidential.

Owned Dry Bulk Vessel Fleet List

The tables below provide information, as of July 30, 2024 about our owned fleet of dry bulk vessels. Each vessel is owned by one of our subsidiaries.

(i) Denotes vessel that we have agreed to sell.