Vessels, net:

The amounts in the accompanying consolidated balance sheets are as follows:

	Vessel Cost			Accumulated Depreciation			Net Book Value
Balance, January 1, 2017	$	2,688,887		$	(1,000,602	)	$	1,688,285
Depreciation		-			(42,215	)		(42,215	)
Vessel acquisitions and other vessels’ costs		54,523			-			54,523
Disposals, transfers and other movements		(96,889	)		40,281			(56,608	)
Balance, June 30, 2017	$	2,646,521		$	(1,002,536	)	$	1,643,985

During the

six

-month period ended

June 30, 2017,

the Company acquired the

2014

-built,

4,957

TEU secondhand containerships

Leonidio

and the

Kyparissia

and the

2005

-built,

7,471

TEU secondhand containership

Maersk Kowloon

June 19, 2017,

the Company entered into

two

financing agreements with a financial institution for

Leonidio

and

Kyparissia

(Note

)

During the

six

-month period ended

June 30, 2017,

the Company sold for scrap the container vessel

Marina

at a price of

$4,670,

delivered to its scrap buyers the container vessel

Romanos

(ex.

MSC Romanos

) and recognized a loss of

$3,638

in aggregate, which is separately reflected in Loss on sale / disposal of vessels, net in the accompanying

2017

consolidated statement of income. On

June 30, 2017,

the Company decided to make arrangements to sell the vessel

Mandraki

(ex.

MSC Mandraki

). At that date, the Company concluded that all the criteria required by the relevant accounting standard, ASC

360

for the classification of the vessel

Mandraki

as “held for sale” were met. As at

June 30, 2017,

the amount of

$7,035,

separately reflected in Vessel held for sale in the

2017

consolidated balance sheet, represents the fair market value of the vessel based on the vessel’s estimated sale price, net of commissions (Level

inputs of the fair value hierarchy). The difference between the estimated fair value less cost to sell the vessel and the vessel’s carrying value (including the unamortized balance of its dry-docking cost), amounting to

$2,732,

is separately reflected in Loss on vessel held for sale in the

2017

consolidated statement of income.

Forty-

six

of the Company’s vessels, with a total carrying value of

$1,636,384

as of

June 30, 2017,

have been provided as collateral to secure the long-term debt discussed in Note

10.

This excludes the

seven

vessels under the sale and leaseback transaction described in Note

11.