SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 2O549
                                    FORM 1O-K
(Mark One)
/ x /Annual  Report  Pursuant  to  Section  13 or 15 (d) of the  Securities  and
Exchange Act of 1934 [Fee Required] for the fiscal year ended December 31, 1998.
or /  /Transition  report  pursuant  to  Section  13 or 15(d) of the  Securities
Exchange  Act  of  1934  [No  Fee  Required]  for  the  transition  period  from
______________ to ________________.

Commission File No. 33-5327.

DSI REALTY INCOME FUND X, a California Limited Partnership
(Exact name of registrant as specified in governing instruments)

_________California___________________________33-0195079_____
(State of other jurisdiction of               (I.R.S. Employer
incorporation or organization                 identification
                                              number

         6700 E. Pacific Coast Hwy., Long Beach, California 9O8O3
         (Address of principal executive offices)     (Zip Code)

Registrants telephone number, including area code-(562)493-3022

Securities registered pursuant to Section 12(b) of the Act: none.

Securities registered pursuant to Section 12(g) of the Act:

                     Units of Limited Partnership Interests
                        (Class of Securities Registered)

     Indicate by check mark,  whether the  registrant  (l) has filed all reports
required to be filed by Section 13 or 15(d) of the  Securities  Exchange  Act of
1934  during  the  preceding  12 months  (or for such  shorter  period  that the
registrant was required to file such reports),  and (2) has been subject to such
filing requirements for the past 9O days. Yes_X____. No______.

     Indicate by check mark if disclosure of delinquent  filers pursuant to Item
405 of Regulation S-K (Section 229.405 of this chapter) is not contained herein,
and will not be contained,  to the best of registrant's knowledge, in definitive
proxy or information  statements  incorporated  by reference in Part III of this
Form 10-K or any amendment to this Form 10-K. /x/

     The Registrant is a limited  partnership and there is no voting stock.  All
units of limited  partnership  sold to date are owned by  non-affiliates  of the
registrant. All such units were sold at $5OO.OO per unit.

<PAGE>

                       DOCUMENTS INCORPORATED BY REFERENCE

Item 8. Registrant's Financial Statements for its fiscal year ended December 31,
     1998, incorporated by reference to Form 10-K, Part II.

Item 11.  Registrant's  Financial  Statements for its fiscal year ended December
     31, 1998, incorporated by reference to Form 10-K, Part III.

Item 12.  Registration  Statement  on  Form  S-11,  previously  filed  with  the
     Securities and Exchange  Commission  pursuant to Securities Act of 1933, as
     amended, incorporated by reference to Form 10-K Part III.

Item 13.  Registrant's  Financial  Statements for its fiscal year ended December
     31, 1998, incorporated by reference to Form 10-K, Part III.

                                     PART I

Item l.  BUSINESS

     Registrant, DSI Realty Income Fund X (the "Partnership") is a publicly-held
limited  partnership  organized under the California Uniform Limited Partnership
Act pursuant to a Certificate and Agreement of Limited Partnership  (hereinafter
referred to as "Agreement")  dated April 15, 1986. The General  Partners are DSI
Properties,  Inc.,  a  California  corporation,  Robert J.  Conway and Joseph W.
Conway, brothers. The General Partners are affiliates of Diversified Securities,
Inc., a  wholly-owned  subsidiary of DSI  Financial,  Inc. The General  Partners
provide similar services to other  partnerships.  Through its public offering of
Limited  Partnership  Units,  Registrant sold thirty-one  thousand seven hundred
eighty-three (31,783) units of limited partnership interests aggregating Fifteen
Million Eight Hundred  Ninety-One  Thousand Five Hundred Dollars  ($15,891,500).
The General  Partners  have retained a one percent (l%) interest in all profits,
losses and  distributions  (subject to certain  conditions)  without  making any
capital  contribution to the Partnership.  The General Partners are not required
to make any capital  contributions to the Partnership in the future.  Registrant
is engaged in the business of investing in and operating mini-storage facilities
with the primary objectives of generating,  for its partners, cash flow, capital
appreciation of its properties,  and obtaining  federal income tax deductions so
that  during  the  early  years  of  operations,   all  or  a  portion  of  such
distributable  cash may not  represent  taxable  income to its  partners.  Funds
obtained by Registrant  during the public offering period of its units were used
to acquire  five  mini-storage  facilities.  Registrant  does not intend to sell
additional limited partnership units. The term of the Partnership is fifty years
but it is anticipated  that Registrant will sell and/or refinance its properties
prior to the termination of the  Partnership.  The Partnership is intended to be
self-liquidating  and  it is  not  intended  that  proceeds  from  the  sale  or
refinancing of its operating  properties  will be reinvested.  Registrant has no
full time employees but shares one or more  employees  with other  publicly-held
limited partnerships sponsored by the General Partners. The General Partners are
vested  with  authority  as to the general  management  and  supervision  of the
business  and  affairs  of  Registrant.   Limited  Partners  have  no  right  to
participate  in the  management  or conduct of such  business  and  affairs.  An
independent   management   company  has  been  retained  to  provide  day-to-day
management  services  with  respect  to  all  of  the  Partnership's  investment
properties.

     The average occupancy levels for each of the Partnership's  five properties
for the years ended December 31, 1998 and December 31, 1997 were as follows:

Location of Property       Average Occupancy        Average Occupancy
                           Level for the            Level for the
                           Year Ended               Year Ended
                           Dec. 31, 1998            Dec. 31, 1997

Ryan Road
Warren, MI                      80%                      84%

Crestwood, IL                   82%                      82%

Groesbeck Hwy
Warren, MI                      85%                      86%

Forrestville, MD                84%                      86%

Troy, MI                        83%                      85%

     The  business in which the  Partnership  is engaged is highly  competitive.
Each of its  mini-storage  facilities  is located in or near a major urban area,
and  accordingly,   competes  with  a  significant  number  of  individuals  and
organizations  with respect to both the purchase and sale of its  properties and
for rentals.  Generally,  Registrant's business is not affected by the change in
seasons.

<PAGE>

Item 2.  PROPERTIES

     Registrant  owns a fee interest in five  mini-storage  facilities,  none of
which are subject to  long-term  indebtedness.  The  following  table sets forth
information  as  of  December  31,  1998  regarding   properties  owned  by  the
Partnership.

Location          Size of      Net Rentable     No. of            Completion
                  Parcel       Area             Rental Units      Date
Ryan Road,
Warren, MI        4.286 acres  53,779           494                9/30/87

Crestwood, IL     2.96 acres   51,055           463               11/25/87

Groesbeck Hwy,
Warren, MI        4.76 acres   59,281           493                l/23/88

Forrestville,
MD                4.18 acres   56,461           527                8/6/88

Troy, MI          4.98 acres   79,201           498                6/17/88

Item 3.  LEGAL PROCEEDINGS

     Registrant is not a party to any material pending legal proceedings.

Item 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

     None.

                                     PART II

Item 5.  MARKET FOR THE REGISTRANT'S COMMON EQUITY AND
                  RELATED STOCKHOLDER MATTERS

     Registrant,  a  publicly-held  limited  partnership,  sold  31,783  limited
partnership  units during its offering and currently has 997 limited  partners
of record.  There is no intention to sell additional  limited  partnership units
nor is there a market for these units.

     Average  cash  distributions  of  $12.62 per Limited Partnership Unit were
declared and paid each quarter for the year ended December 31, 1998 and  $12.59
per Limited Partnership Unit were declared and paid each quarter for the year
ended December 31, 1997 and $11.25 per  Limited Partnership  Unit were declared
and paid each quarter for the year ended  December 31, 1996. Due to adverse
conditions  in the local  economies where certain of the properties are located,
it is Registrant's expectations that distributions will continue to be paid in
the future, however, at a reduced annualized return of the Limited Partners'
capital contributions.

Item 6.  SELECTED FINANCIAL DATA
         FIVE YEARS ENDED DECEMBER 31, 1998
         -------------------------------------------------------------------
                        1998         1997        1996       1995        1994
                        ----         ----        ----       ----        ----

TOTAL
REVENUES              $2,707,174  $2,659,936  $2,667,128  $2,529,555 $ 2,292,130

TOTAL
EXPENSES               1,626,960   1,628,097   1,574,943   1,561,433   1,428,672
                      ---------- ----------- ----------- ----------- -----------

NET
INCOME                $1,080,214  $1,031,839  $1,092,185  $  968,122 $   863,458
                      ========== =========== =========== =========== ===========

TOTAL
ASSETS                $9,050,011  $9,300,328  $9,811,469  $9,890,145 $10,039,357
                      ========== =========== =========== =========== ===========

NET CASH
PROVIDED BY
OPERATING
ACTIVITIES            $1,918,525  $1,644,418  $1,906,898  $1,919,722 $ 1,319,398
                      ========== =========== =========== =========== ===========
NET INCOME
PER LIMITED
PARTNERSHIP
UNIT                  $    33.65  $    32.14  $    34.02  $    30.16 $     26.90
                      ========== =========== =========== =========== ===========

CASH
DISTRIBUTIONS
PER $500
LIMITED
PARTNERSHIP
UNIT                  $    50.51  $    50.37 $     45.00 $     40.00 $     36.25
                      ========== =========== =========== =========== ===========

<PAGE>

Item 7.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
                  CONDITION AND RESULTS OF OPERATIONS.

                              RESULTS OF OPERATIONS

1998 COMPARED TO 1997

     Total revenues increased from $2,659,936 in 1997 to $2,707,174 in 1998,
while total expenses decreased from $1,628,097 to $1,626,960 resulting in an
increase in net income from $1,031,839 to $1,080,214.  The approximate $39,400
(1.5%) increase in rental revenues can be attributed to higher unit rental
rates.  Occupancy levels for the Partnership's five mini-storage facilities
averaged 82.7% for the year ended December 31, 1998, compared to 84.5% for the
year ended December 31, 1997.  The Partnership continued to increase rental
rates where market conditions made such increases feasible.  Operating expenses
decreased by approximately $11,200 (1.8%) primarily due to decreases in repairs
and maintenance, legal and professional and worker's conpensation insurance
expenses partially offset by increases in real estate tax and salary and wage
expenses.  General and administrative expenses increased by approximately $5,800
(3.3%) primarily due to an increase in Michigan State Taxes.  The General
Partners' incentive management fee remained constant.  Property management fees
increased by approximately $2,700 (2.1%).  Property management fees, which are
computed as a percentage of rental revenue, increased as a result of the
increase in rental revenue.


1997 COMPARED TO 1996

     Total revenues decreased from $2,667,128 in 1996 to $2,659,659 in 1997,
while total expenses increased from $1,574,943 to $1,628,097 resulting in a
decrease in net income from $1,092,185 to $1,031,839.  The approximate $14,800
(0.6%) decrease in rental revenues can be attributed to lower occupancy levels
partially offset by higher unit rental rates.  Occupancy levels for the
Partnership's five mini-storage facilities averaged 84.5% for the year ended
December 31, 1997, compared to 86.4% for the year ended December 31, 1996.  The
Partnership continued to increase rental rates where market conditions made
such increases feasible.  Operating expenses increased by approximately $33,000
(5.4%) primarily due to increases in repairs and maintenance, real estate
taxes and salaries and wages partially offset by a decrease in yellow pages
advertising costs.  General and administrative expenses increased by
approximately $8,800 (5.3%) primarily due to increases in miscellaneous
advertising costs, insurance and office expenses partially offset by a decrease
in other taxes.  The General Partners' incentive management fee increased by
approximately $14,400 (11.1%).  As this fee is computed as a percentage of
distributions made to the Limited Partners, the 1997 increase in distributions
resulted in an increased general partners' incentive management fee.  Property
management fees remained constant.


                         LIQUIDITY AND CAPITAL RESOURCES

     Net cash  provided  by  operating  activities  increased  by  approximately
$274,100 (16.7%) primarily as a result of an increase net income, deferral of
property management and incentive management fees and a decrease in other
assets.  Net cash provided by operating activities increased by approximately
$262,500 (13.8%) in 1997 compared to 1996 primarily as a result of the decrease
in net income and partial payment of accrued property management fees.

     Cash used in financing activities,  as set forth in the statements of cash
flows,  consists solely of cash distributions to partners. Special distributions
of 2%, 2% and 1% were declared and paid on December 15, 1998, 1997  and 1996,
respectively.

     Cash used in investing  activities,  as set forth in the  statement of cash
flows, consists of acquisitions of equipment for the Partnership's  mini-storage
facilities in 1996 and 1997.  The  Partnership has no material commitments  for
capital expenditures.

     The  General  Partners  plan  to  continue  their  policy  of  funding  the
continuing  improvement  and  maintenance  of Partnership  properties  with cash
generated from operations.  The Partnership's  financial  resources appear to be
adequate to meet its needs for the next twelve months.

     The Year 2000 issue refers to the inability of certain computer systems to
recognize a date using "00" as the Year 2000.  The Partnership has implemented
a Year 2000 program, which ahs three phases: (1) identification;
(2) remediation; and (3) testing and verification.  The Partnership, as well
as the property  management company and the Partnership's warehouse facilities
have completed those phases.  Computer programs have been upgraded and tested
to function properly with respect to the dates in the Year 2000 and thereafter.
Year 2000 compliance costs are nominal and have been expensed in the regular
course of business.  The Partnership provides no assurance that third-party
suppliers and customers will be compliant.  Nevertheless, the Partnership does
not believe that the Year 2000 issue will have a material adverse effect on
its financial condition or results of operations.

     The General  Partners  are not aware of any  environmental  problems  which
might  have  a  material  adverse  impact  on  the  financial  position  of  the
Partnership.

<PAGE>

Item 8.  FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

         Attached  hereto as  Exhibit l is the  information  required  to be set
forth as Item 8, Part II hereof.

Item 9.  CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON
                  ACCOUNTING AND FINANCIAL DISCLOSURE.

         None.

                                    PART III

Item 10.  DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT'S
                  GENERAL PARTNER

     The General Partners of Registrant are the same as when the Partnership was
formed, i.e., DSI Properties,  Inc., a California corporation,  Robert J. Conway
and Joseph W.  Conway,  brothers.  As of December 31,  1998,  Messrs.  Robert J.
Conway and Joseph W. Conway, each of whom own approximately 48.4% of the issued
and outstanding capital stock of DSI Financial,  Inc., a California corporation,
together  with Mr.  Joseph W.  Stok,  currently  comprise  the  entire  Board of
Directors of DSI Properties, Inc.

     Mr. Robert J. Conway is 65 years of age and is a licensed  California  real
estate  broker,  and since 1965 has been  President and a member of the Board of
Directors of  Diversified  Securities,  Inc.,  and since 1973  President,  Chief
Financial Officer and a member of the Board of Directors of DSI Properties, Inc.
Mr. Conway received a Bachelor of Science Degree from Marquette  University with
majors in Corporate Finance and Real Estate.

     Mr.  Joseph W.  Conway  is age 69 and has been  Executive  Vice  President,
Treasurer and a member of the Board of Directors of Diversified Securities, Inc.
since 1965 and since 1973 the Vice President,  Treasurer and member of the Board
of Directors of DSI  Properties,  Inc.  Mr.  Conway  received a Bachelor of Arts
Degree from Loras College with a major in Accounting.

     Mr.  Joseph  W.  Stok is age 75 and  has  been a  member  of the  Board  of
Directors of DSI  Properties,  Inc.  since 1994, a Vice President of Diversified
Securities,   Inc.  since  1973,  and  an  Account  Executive  with  Diversified
Securities, Inc. since 1967.

Item 11.  EXECUTIVE COMPENSATION (MANAGEMENT RENUMERATION AND
                  TRANSACTIONS)

     The  information  required  to be  furnished  in  Item  11 of  Part  III is
contained  in  Registrant's  Financial  Statements  for its  fiscal  year  ended
December 31, 1998,  which together with the report of its independent  auditors,
Deloitte & Touche LLP, is attached hereto as Exhibit 1 and  incorporated  herein
by this reference. In addition to such information:

     (a)  No annuity,  pension or retirement benefits are proposed to be paid by
          Registrant  to any of  the  General  Partners  or to  any  officer  or
          director of the corporate General Partner;

     (b)  No  standard or other  arrangement  exists by which  directors  of the
          Registrant are compensated;

     (c)  The  Registrant  has not  granted  any option to  purchase  any of its
          securities; and

     (d)  The Registrant has no plan, nor does the Registrant  presently propose
          a plan,  which  will  result  in any  remuneration  being  paid to any
          officer or director upon termination of employment.

Item 12.  SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND
                  MANAGEMENT

     As of  December  31,  1998,  no person of record  owned more than 5% of the
limited partnership units of Registrant,  nor was any person known by Registrant
to own of record and beneficially,  or beneficially  only, more than 5% thereof.
The balance of the  information  required to be furnished in Item 12 of Part III
is contained in  Registrant's  Registration  Statement on Form S-11,  previously
filed  pursuant  to the  Securities  Act of  1933,  as  amended,  and  which  is
incorporated herein by this reference.  Please see information contained in Item
10 hereinabove.

<PAGE>

Item 13.  CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

     The  information  required  to be  furnished  in  Item  13 of  Part  III is
contained  in  Registrant's  Financial  Statements  for its  fiscal  year  ended
December 31, 1998,  attached hereto as Exhibit l and incorporated herein by this
reference.

                                     PART IV

Item 14  EXHIBITS, FINANCIAL STATEMENT SCHEDULES AND REPORTS ON
                  FORM 8-K

     (a)(l) Attached hereto and incorporated herein by this reference as Exhibit
          l are Registrant's  Financial Statements and Supplemental Schedule for
          its year ended  December  31, 1998,  together  with the reports of its
          independent  auditors,  Deloitte  &  Touche.  See  Index to  Financial
          Statements and Supplemental Schedule.

     (a)(2) Attached hereto and incorporated herein by this reference as Exhibit
          2 is Registrant's  letter to its Limited Partners regarding its Annual
          Report for its fiscal year ended  December 31, 1998. (b) No reports on
          Form 8K were filed during the fiscal year ended December 31, 1998.

                                   SIGNATURES

     Pursuant  to the  requirements  of Section  13 or 15 (d) of the  Securities
Exchange Act of 1934, the Registrant has duly caused this report to be signed on
its behalf by the undersigned, thereunto duly authorized.

DSI REALTY INCOME FUND X
by:  DSI Properties, Inc., a
California corporation, as
General Partner



By_____________________________     Dated:  March 31, 1999
  ROBERT J. CONWAY, President
  (Chief Executive Officer, Chief
  Financial Officer, and Director)



By____________________________      Dated:  March 31, 1999
  JOSEPH W. CONWAY (Executive
  Vice President and Director)

     Pursuant to the  requirements of the Securities  Exchange Act of 1934, this
report has been signed by the following  persons on behalf of the registrant and
in the capacities and on the date indicated.

DSI REALTY INCOME FUND X
by:  DSI Properties, Inc., a
California corporation, as
General Partner



By:__________________________               Dated:  March 31, 1999
  ROBERT J. CONWAY, President,
  Chief Executive Officer, Chief
  Financial Officer, and Director



By___________________________               Dated:  March 31, 1999
  JOSEPH W. CONWAY
  (Executive Vice President
  and Director)

<PAGE>

                            DSI REALTY INCOME FUND X

                              CROSS REFERENCE SHEET

                        FORM 1O-K ITEMS TO ANNUAL REPORT

PART I, Item 3. There are no legal proceedings pending or threatened.

PART I, Item 4.  Not applicable.

PART II, Item 5.  Not applicable.

PART II, Item 6. The information required is contained in Registrant's Financial
Statements for its fiscal year ended December 31, 1995, attached as Exhibit l to
Form 10-K.

PART II, Item 8. See Exhibit l to Form 10-K filed herewith.

PART II, Item 9.  Not applicable.

<PAGE>

                                    EXHIBIT l
DSI REALTY INCOME FUND X
(A California Real Estate Limited Partnership)

SELECTED FINANCIAL DATA
FIVE YEARS ENDED DECEMBER 31, 1998
--------------------------------------------------------------------------------

                        1998         1997        1996       1995        1994
                        ----         ----        ----       ----        ----

TOTAL
REVENUES              $2,707,174  $2,659,936  $2,667,128  $2,529,555 $ 2,292,130

TOTAL
EXPENSES               1,626,960   1,628,097   1,574,943   1,561,433   1,428,672
                      ---------- ----------- ----------- ----------- -----------

NET
INCOME                $1,080,214  $1,031,839  $1,092,185  $  968,122 $   863,458
                      ========== =========== =========== =========== ===========

TOTAL
ASSETS                $9,050,011  $9,300,328  $9,811,469  $9,890,145 $10,039,357
                      ========== =========== =========== =========== ===========

NET CASH
PROVIDED BY
OPERATING
ACTIVITIES            $1,918,525  $1,644,418  $1,906,898  $1,919,722 $ 1,319,398
                      ========== =========== =========== =========== ===========
NET INCOME
PER LIMITED
PARTNERSHIP
UNIT                  $    33.65  $    32.14  $    34.02  $    30.16 $     26.90
                      ========== =========== =========== =========== ===========

CASH
DISTRIBUTIONS
PER $500
LIMITED
PARTNERSHIP
UNIT                  $    50.51  $    50.37  $    45.00  $    40.00 $     36.25
                      ========== =========== =========== =========== ===========



The following are  reconciliations  between the operating  results and partners'
equity per the financial  statements and the Partnership's income tax return for
the year ended December 31, 1998.


                                                      Operating        Partners'
                                                        Results         Equity

Per financial statements                             $ 1,080,214    $ 6,676,395
Excess financial statement depreciation                  181,316      1,955,960
Capitalization of syndication costs                                   1,694,248
Accrued incentive management fee                         145,930      1,302,163
Accrued partner distributions                                           321,042 
Deferred rental revenues                                                 74,734
Acquisition costs capitalized for                                     
tax purposes                                                          1,146,936
State taxes                                              (16,240)
Other                                                                        (6)
                                                     -----------    -----------
Per Partnership income tax return                    $ 1,391,220    $13,171,478
                                                     ===========    ===========
Net taxable income per $500 limited
partnership unit                                     $     43.77
                                                     ===========
<PAGE>

DSI REALTY INCOME FUND X
(A California Real Estate Limited Partnership)


INDEX TO FINANCIAL STATEMENTS AND SUPPLEMENTAL SCHEDULE

                                                                            Page

FINANCIAL STATEMENTS:

    Independent Auditors' Report                                             F-1

    Balance Sheets at December 31, 1998 and 1997                             F-2

    Statements of Income for the Three
        Years Ended December 31, 1998                                        F-3

    Statements of Changes in Partners' Equity for
        the Three Years Ended December 31, 1998                              F-4

    Statements of Cash Flows for the Three Years
        Ended December 31, 1998                                              F-5

    Notes to Financial Statements                                            F-6


SUPPLEMENTAL SCHEDULE:

    Independent Auditors' Report                                             F-8

    Schedule XI - Real Estate and Accumulated Depreciation                   F-9


SCHEDULES OMITTED:

Financial  statements and schedules not listed above are omitted  because of the
     absence  of  conditions  under  which  they are  required  or  because  the
     information is included in the financial  statements named above, or in the
     notes thereto.

<PAGE>

INDEPENDENT AUDITORS' REPORT
To the Partners of
DSI Realty Income Fund X:

We have audited the accompanying  balance sheets of DSI Realty Income Fund X, a
California Real Estate Limited  Partnership (the  "Partnership")  as of December
31, 1998 and 1997,  and the related  statements of income,  changes in partners'
equity (deficit), and cash flows for each of the three years in the period ended
December 31, 1998. These financial statements are the responsibility of the
Partnership's management.  Our responsibility is to express an opinion on these
financial statements based on our audits.

We  conducted  our  audits  in  accordance  with  generally   accepted  auditing
standards.  Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement.  An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements.  An audit also includes
assessing the  accounting  principles  used and  significant  estimates  made by
management,  as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.

In our  opinion,  such  financial  statements  present  fairly,  in all material
respects,  the  financial  position of DSI Realty Income Fund X at December 31,
1998 and 1997,  and the results of its operations and its cash flows for each of
the three  years in the  period  ended  December  31,  1998 in  conformity  with
generally accepted accounting principles.  Also in our opinion, such financial
statement schedule, when considered in relation to the basic financial
statements taken as a whole, presents fairly in all material respects, the
information set forth therein.


February 5, 1999
DELOITTE & TOUCHE
LONG BEACH, CALIFORNIA

<PAGE>
DSI REALTY INCOME FUND X
(A California Real Estate Limited Partnership)

BALANCE SHEETS
DECEMBER 31, 1998 AND 1997
--------------------------------------------------------------------------------


ASSETS                                                  1998             1997

CASH AND CASH EQUIVALENTS                           $ 1,772,250      $ 1,475,167

PROPERTY, net (Notes 1, 2 and 3)                      7,213,688        7,752,217

OTHER ASSETS                                             64,073           72,944
                                                    -----------      -----------
TOTAL                                               $ 9,050,011      $ 9,300,328
                                                    ===========      ===========

LIABILITIES AND PARTNERS' EQUITY

LIABILITIES:
Distribution due partners (Note 4)                  $   321,040      $   321,040
Incentive management fee payable to
general partners (Note 4)                             1,302,163        1,156,233
Property management fees payable (Note 1)               616,627          483,594
Customer deposits and other liabilities                 133,786          121,838
                                                    -----------      -----------
Total liabilities                                     2,373,616        2,082,705
                                                    -----------      -----------
PARTNERS' EQUITY (DEFICIT)(Notes 1 and 4):
General partners                                        (75,264)        (69,852)
Limited partners (31,783 limited
partnership units outstanding
at December 31, 1998 and 1997)                        6,751,659        7,287,475
                                                   ------------      -----------
Total partners' equity                                6,676,395        7,217,623
                                                   ------------      -----------
TOTAL                                               $ 9,050,011      $ 9,300,328
                                                   ============      ===========

See accompanying notes to financial statements.

<PAGE>

DSI REALTY INCOME FUND X
(A California Real Estate Limited Partnership)

STATEMENTS OF INCOME
THREE YEARS ENDED DECEMBER 31, 1998
--------------------------------------------------------------------------------


                                               1998         1997         1996

REVENUES:
Rental revenues                             $2,645,296   $2,605,899   $2,620,682
Interest and other income                       61,878       54,037       46,446
                                            ----------   ----------   ----------
Total revenues                               2,707,174    2,659,936    2,667,128
                                            ----------   ----------   ----------

EXPENSES:
 Depreciation (Note 2)                         538,529      538,529      540,890
 Operating                                     628,231      639,403      606,374
 General and administrative                    181,236      175,402      166,622
 General partners' incentive
  management fee (Note 4)                      145,930      144,469      130,022
 Property management (Note 1)                  133,034      130,294      131,035
                                            ----------   ----------   ----------
Total expenses                               1,626,960    1,628,097    1,574,943
                                            ----------   ----------   ----------
NET INCOME                                  $1,080,214   $1,031,839   $1,092,185
                                            ==========   ==========   ==========
AGGREGATE NET INCOME ALLOCATED
TO (Note 4):
Limited partners                            $1,069,412   $1,021,521   $1,081,263
General partners                                10,802       10,318       10,922
                                            ----------   ----------   ----------
TOTAL                                       $1,080,214   $1,031,839   $1,092,185
                                            ==========   ==========   ==========
NET INCOME PER LIMITED PARTNERSHIP
UNIT (Notes 2 and 4)                        $    33.65   $    32.14   $    34.02
                                            ==========   ==========   ==========

See accompanying notes to financial statements.

<PAGE>

DSI REALTY INCOME FUND X 
(A California Real Estate Limited Partnership)

STATEMENTS OF CHANGES IN PARTNERS' EQUITY
THREE YEARS ENDED DECEMBER 31, 1998
--------------------------------------------------------------------------------


                                         General       Limited
                                        Partners       Partners         Total

                                     
BALANCE AT JANUARY 1, 1996              (60,475)      8,215,788       8,155,313

 Net income                              10,922       1,081,263       1,092,185
 
 Distributions                          (14,447)     (1,430,237)     (1,444,684)
                                        -------      ----------      ----------
BALANCE AT DECEMBER 31, 1996           $(64,000)     $7,866,814      $7,802,814

 Net income                              10,318       1,021,521       1,031,839

 Distributions                          (16,170)     (1,600,860)     (1,617,030)
                                        -------      ----------      ----------
BALANCE AT DECEMBER 31, 1997           $(69,852)     $7,287,475      $7,217,623

 Net income                              10,802       1,069,412       1,080,214

 Distributions                          (16,214)     (1,605,228)     (1,621,442)
                                        -------      ----------      ----------
                                       $(75,264)     $6,751,659      $6,676,395
                                        =======      ==========      ==========


See accompanying notes to financial statements.


<PAGE>

DSI REALTY INCOME FUND X 
(A California Real Estate Limited Partnership)

STATEMENTS OF CASH FLOWS
THREE YEARS ENDED DECEMBER 31, 1998
--------------------------------------------------------------------------------


                                            1998          1997          1996

CASH FLOWS FROM OPERATING ACTIVITIES:
 Net income                              $1,080,214    $1,031,839    $1,092,185
 Adjustments to reconcile net
  income to net cash provided
  by operating activities:
  Depreciation                              538,529       538,529       540,890
  Changes in assets and liabilities:
   Receivable from general partners           
   Other assets                               8,871     
   Incentive management fee
    payable to general partners             145,930       144,469       130,022
   Property management fee payable          133,033       (69,705)      131,034
   Customer deposits and other
    liabilities                              11,948          (714)       12,767
                                         -----------   -----------   -----------
  Net cash provided by operating
  activities                              1,918,525     1,644,418     1,906,898

CASH FLOWS FROM FINANCING ACTIVITIES -
Distributions to partners                (1,621,442)   (1,617,030)   (1,444,684)

CASH FLOWS FROM INVESTING ACTIVITIES -
Additions to property                                      (7,628)     (139,590)
                                        -----------    -----------   -----------
NET INCREASE IN CASH AND
CASH EQUIVALENTS                            297,083        19,760       322,624

CASH AND CASH EQUIVALENTS,
AT BEGINNING OF YEAR                      1,475,167     1,455,407     1,132,783
                                        -----------   -----------   ------------
CASH AND CASH EQUIVALENTS,
AT END OF YEAR                          $ 1,772,250   $ 1,475,167   $ 1,455,407
                                        ===========   ===========   ============

See accompanying notes to financial statements.

<PAGE>

DSI REALTY INCOME FUND X
(A California Real Estate Limited Partnership)

NOTES TO FINANCIAL STATEMENTS
THREE YEARS ENDED DECEMBER 31, 1998


1.   GENERAL

     DSI Realty  Income Fund X, a California  Real Estate  Limited  Partnership
     (the  "Partnership"),  has three general partners (DSI  Properties,  Inc. 
     Robert J. Conway and Joseph W. Conway) and limited partners owning 31,783  
     limited partnership  units,  which  were  purchased for $500 a unit.  The  
     general partners have made no capital  contribution to the Partnership and 
     are not required to make any capital contribution in the future.  The 
     Partnership has a maximum life of 50 years and was formed on May 1, 1986
     under the California Uniform Limited Partnership Act for the primary 
     purpose of acquiring and operating real estate.

     The Partnership has acquired five mini-storage properties, two of which 
     are located in Warren, Michigan; one in Crestwood, Illinois; one in Troy,
     Michigan; and one in Forestville, Maryland.  The facilities were acquired 
     from Dahn Corporation ("Dahn").  Dahn is not affiliated with the 
     Partnership.  Dahn is affiliated with other partnerships in which DSI
     Properties, Inc., Robert J. Conway and Joseph W. Conway are the general
     partners.  The mini-storage facilities are operated for the Partnership by
     Dahn  under various agreements which are subject to renewal annually.
     Under the terms of the agreements, the Partnership is required to pay 
     Dahn a property management fee equal to 5% of gross revenue, as defined.

2.   SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

     Cash and Cash Equivalents - The Partnership classifies its short-term 
     investments purchased with an original maturity of three months or less
     as cash equivalents.

     Property and Depreciation - Property is recorded at cost and is composed
     mini-storage facilities.  Depreciation is provided using the straight-line
     method over an estimated useful life of 20 years for the facilities.  
     Building improvements are depreciated over a five year period.

     Income Taxes - No provision has been made for income taxes in the 
     accompanying financial statements.  The taxable income or loss of the 
     Partnership is allocated to each partner in accordance with the terms of
     the Agreement of Limited Partnership.  Each partner's tax status, in turn,
     determines the appropriate income tax for its allocated share of the 
     Partnership taxable income or loss.  The net difference between the
     bases of the Partnership's assets and liabilities for federal income tax
     purposes and as reported for financial statement purposes is $6,495,083.

     Revenues - Rental revenue is recognized using the accrual method based
     on contractual amounts provided for in the lease agreements, which 
     approximates recognition on a straight line basis.  The term of the lease 
     agreements is usually less than one year.

     Net Income per Limited Partnership Unit - Net income per limited 
     partnership unit is computed by dividing net income allocated 
     to the limited partners by the weighted average number of limited
     partnership units outstanding during each year (31,783 in 1998,
     1997 and 1996).

     Estimates - The preparation of financial statements in conformity 
     with generally accepted accounting principles requires the Partnership's
     management to make estimates and assumptions that affect the reported
     amount of assets and liabilities at the date of the financial statements
     and the reported amounts of revenues and expenses during the reporting 
     period.  Actual results could differ from those estimates.

     Impairment of Long-Lived Assets - The Partnership regularly reviews
     long-lived assets for impairment whenever events or changes in 
     circumstances indicate that the carrying amount of the asset may not
     be recoverable.  If the sum of the expected future cash flow is less
     than the carrying amount of the asset, the Partnership recognizes an 
     impairment.  No impairment losses were recognized in 1998, 1997 or 1996.

     Fair Value of Financial Instruments - The Company's financial instruments
     consist primarily of cash, receivables, accounts payable and accrued
     liabilities.  The carrying values of all financial instruments are
     representative of their fair values due to their short-term maturities.

     Concentration of Credit Risk - Financial instruments that potentially
     subject the Partnership to concentrations of credit risk consist primarily
     of cash equivalents and rent receivables.  The Partnership places its cash
     equivalents with high credit quality institutions.

3.   PROPERTY
   
     As of December 31, 1998 and 1997, the total cost of property and 
     accumulated depreciation are as follows:

                                                    1998                1997

     Land                                        $ 2,089,882        $ 2,089,882
     Buildings and improvements                   10,833,336         10,833,336
                                                 -----------        ------------
     Total                                       $12,923,218        $12,923,218 
     Accumulated depreciation                     (5,709,530)        (5,171,001)
                                                 -----------        -----------
     Property, net                               $ 7,213,688        $ 7,752,217
                                                 ===========        ===========

4.  ALLOCATION OF PROFITS AND LOSSES

     Under the Agreement of Limited Partnership, the general partners
     are to be allocated 1% of the net profits or net losses from operations,
     and the limited partners are to be allocated the balance of the net
     profit or loss from operations in proportion to their limited partnership
     interests.  The general partners are also entitled to receive a percentage
     based on a predetermined formula, of any cash distribution from the sale, 
     other disposition or refinancing of a real estate project.       

     In addition, the general partners are entitled to an incentive management
     fee for supervising the operations of the Partnership.  The fee is to be 
     paid in an amount equal to 9% per annum of the Partnership distributions
     made from cash available for distribution from operations, as defined, and
     the payment of such fee is subordinated to a cumulative return to the 
     limited partners of 8.1% of the offering proceeds as defined.

5.   BUSINESS SEGMENT INFORMATION

     The following disclosure about segment reporting of the Partnership is
     made in accordance with the requirements of SFAS No. 131, "Disclosures
     about Segments of an Enterprise and Related Information."  The Partnership
     operates under a single segment; storage facility operations, under which
     the Partnership rents its storage facilities to its customers on a need
     basis and charges rent on a predetermined rate.

<PAGE>



<PAGE>

DSI REALTY INCOME FUND X
(A California Real Estate Limited Partnership)

REAL ESTATE AND ACCUMULATED DEPRECIATION
--------------------------------------------------------------------------------


<TABLE>
<CAPTION>

                                                    Costs Capitalized
                                 Initial Cost to      Subsequent to    Gross Amount at Which Carried
                                   Partnership         Acquisition           at Close of Period
                               -------------------  -----------------  -----------------------------
                                        Buildings                               Buildings                         Date  
                                           and       Improve- Carrying             and                    Accum.   of   Date
Description       Encumbrances   Land  Improvements    ments   Costs     Land   Improvements   Total     Deprec.  Const. Acq. Life

MINI-U-STORAGE
<S>                   <C>     <C>       <C>         <C>            <C>         <C>        <C>         <C>         <C>   <C>   <C>

Ryan Road, Warren     
 Michigan             None    $277,799  $1,715,183   $ 5,319         $277,799  $1,720,502  $1,998,301   $950,932  12/87 02/87 20 Yrs
Crestwood,Illinois    None     205,960   1,631,179     3,211          205,960   1,634,390   1,840,350    904,407  12/87 04/87 20 Yrs
Grosebeck Highway           
 Warren, Michigan     None     314,517   1,760,657    67,206          314,517   1,827,863   2,142,380    980,734  01/88 04/87 20 Yrs
Forestville, Maryland None     755,000   2,278,110     9,145          755,000   2,287,255   3,042,255  1,196,925  07/88 08/87 20 Yrs
Troy, Michigan        None     536,606   3,148,119   215,207          536,606   3,363,326   3,899,932  1,676,532  06/88 06/88 20 Yrs
                              --------  ----------   -------         --------  ----------  ---------- ----------
                            $2,089,882 $10,533,248  $300,088       $2,089,882 $10,833,336 $12,923,218*$5,709,530
                            ==========  ==========  ========       ==========  ========== =========== ==========
</TABLE>

                                                     Real Estate     Accumulated
                                                        at Cost     Depreciation
                                                     
               Balance at January 1, 1996              12,776,000      4,091,582
                 Additions                                139,590        540,890
                                                      -----------     ----------
               Balance at December 31, 1996           $12,915,590     $4,632,472
                 Additions                                  7,628        538,529
                                                      -----------     ----------
               Balance at December 31, 1997           $12,923,218     $5,171,001
                 Additions                                               538,529
                                                      -----------     ----------
               Balance at December 31, 1998           $12,923,218     $5,709,530
                                                      ===========     ==========


<PAGE>

                                    EXHIBIT 2
                                 March 31, 1999

                      ANNUAL REPORT TO LIMITED PARTNERS OF

                            DSI REALTY INCOME FUND X

Dear Limited Partner:

     This report  contains the  Partnership's  balance sheets as of December 31,
1998 and 1997, and the related statements of income, changes in partners' equity
and cash flows for each of the three years in the period ended December 31, 1998
accompanied  by an  independent  auditors'  report.  The  Partnership  owns five
mini-storage facilities and a 70% interest in a sixth mini-storage facility on a
joint venture basis with an affiliated Partnership, DSI Realty Income Fund VIII.
The Partnership's  properties were each purchased for all cash and funded solely
from subscriptions for limited partnership interests without the use of mortgage
financing.

     Your attention is directed to the section entitled Management's  Discussion
and Analysis of Financial  Condition and Results of  Operations  for the General
Partners'  discussion and analysis of the financial statements and operations of
the Partnership.

     Average  occupancy levels for each of the  Partnership's six properties for
the years ended December 31, 1998 and December 31, 1997 were as follows:


Location of Property               Average Occupancy          Average Occupancy
                                   Levels for the             Levels for the
                                   Year Ended                 Year Ended
                                   Dec. 31, 1998              Dec. 31, 1997

Ryan Rd
Warren, MI                           80%                         84%

Crestwood,IL                         82%                         82%

Groesbeck Hwy
Warren, MI                           85%                         86%

Forestville, MD                      84%                         86%

Troy, MI                             83%                         85%


     We will keep you informed of the activities of DSI Realty Income Fund X as
they develop.  If you have any questions,  please contact us at your convenience
at (562) 493-3022.

     If you would like a copy of the  Partnership's  Annual  Report on Form 10-K
for the year ended  December  31, 1998 which was filed with the  Securities  and
Exchange  Commission (which report includes the enclosed Financial  Statements),
we will forward a copy of the report to you upon written request.

                                                     Very truly yours,

                                                     DSI REALTY INCOME FUND X
                                                     By:  DSI Properties, Inc.



                                                   By___________________________
                                                     ROBERT J. CONWAY, President