True, it's some years out, but note that the alternate argument is also not favorable. If interest rates stay low, probably the company retires the preferreds, because other capital or debt would be cheaper (obviously this assumes calm markets). If interest rates spike, you risk the value of the preferreds going down as the coupon is no longer competitive. The ideal solution, the preferred trading at par because the coupon is slightly more than competitive, is a rather narrow slot. That really sucks, huh? Worrying about being forced to get 3X your investment back some day.
But, you have to admit that MLP's at their current prices are arguably superior. Many of them are also 3 baggers to get back to their historical ranges (ignoring the bubbble), the yield and value will both adjust with oil prices, they are an inflation hedge, and there's no call short of them being bought out. If you believe oil prices cannot stay here in the long run, especially given the high dollar, the MLP's that are exposed to oil prices are compelling. Most of them are hedged forward to keep up cash flow through this current oil price trough. Oil could still fall further before finding a bottom, and if it does, fine. More bargains.
I'm accumulating on weakness KYE, MWE, ATN, LINE, EROC, LGCY, APL, AHD and of course PGH and PWE. Not that I wouldn't buy NRF A/B, it's still the steal of the year of course, but one likes to be spread out a bit.
It is a completely different risk profile. Assuming that the Great Depression II is not happening, SHO is a rock, and BEE is a castle built on sand. Bee's preferred is worth a flyer using money that you can afford to lose. SHO is an investment.