Mirvac said today it will cut its full-year distribution by up to 40% less than a month after reaffirming its guidance.

The Australian property developer and its domestic peers have been cutting their distributions to retain cash as builders grapple with the global credit crisis, higher debt funding costs, tighter liquidity and ongoing volatility in world financial markets.

The company said it will pay between 8 cents and 9c a stapled security for the year ending 30 June, down from a previous forecast of 13.4c, to strengthen its balance sheet.

Shares of Mirvac fell sharply in early trading, dropping 5.9% to 88.5c. The benchmark S&P/ASX 200 index was down 2.1 points at 3478.1.

The Australian