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, 1996.
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

         37O1 Long Beach Boulevard, Long Beach, California 9O8O7
         (Address of principal executive offices)     (Zip Code)

Registrants telephone number, including area code-(562)595-7711

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,
     1996, incorporated by reference to From 10-K, Part II.

Item 11.  Registrant's  Financial  Statements for its fiscal year ended December
     31, 1996, 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, 1996, 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, 1996 and December 31, 1995 were as follows:

Location of Property       Average Occupancy        Average Occupancy
                           Level for the            Level for the
                           Year Ended               Year Ended
                           Dec. 31, 1996            Dec. 31, 1995

Ryan Road
Warren, MI                      86%                      87%

Crestwood, IL                   83%                      83%

Groesbeck Hwy
Warren, MI                      88%                      93%

Forrestville, MD                90%                      87%

Troy, MI                        87%                      87%

     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,  1996  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 1,040 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 $11.25 per  Limited Partnership  Unit were
declared  and paid each  quarter for the year ended  December 31, 1996 and 
$10.00 per Limited  Partnership  Unit for each quarter for the year ended  
December 31, 1995. 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
         FOR THE PERIOD ENDED DECEMBER 31, 1996, 1995, 1994, 1993, and 1992.
         -------------------------------------------------------------------
                        1996         1995        1994       1993        1992
                        ----         ----        ----       ----        ----

TOTAL
REVENUES              $2,667,128  $2,529,555 $ 2,292,130 $ 1,926,999 $ 1,756,575

TOTAL
EXPENSES               1,574,943   1,561,433   1,428,672   1,465,990   1,484,287
                      ---------- ----------- ----------- ----------- -----------

NET
INCOME                $1,092,185  $  968,122 $   863,458 $   461,009 $   272,288
                      ========== =========== =========== =========== ===========

TOTAL
ASSETS                $9,811,469  $9,890,145 $10,039,357 $10,059,109 $10,430,241
                      ========== =========== =========== =========== ===========

NET CASH
PROVIDED BY
OPERATING
ACTIVITIES            $1,906,898  $1,919,722 $ 1,319,398 $ 1,148,734 $   987,669
                      ========== =========== =========== =========== ===========
NET INCOME
PER LIMITED
PARTNERSHIP
UNIT                  $    45.00  $    30.16 $     26.90 $     14.36 $      8.48
                      ========== =========== =========== =========== ===========

CASH
DISTRIBUTIONS
PER $500
LIMITED
PARTNERSHIP
UNIT                  $    40.00 $     36.25 $     31.25 $     35.00 $     35.00
                      ========== =========== =========== =========== ===========

<PAGE>

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

                              RESULTS OF OPERATIONS

1996 COMPARED TO 1995

     Total revenues increased from $2,529,555 in 1995 to $2,667,128 in 1996, 
while total expenses increased from $1,561,433 to $1,574,943 resulting in an
increase in net income from $968,122 to $1,092,185.  The approximate $125,100
(5%) increase in rental revenues can be attributed higher unit rental rates.  
Occupancy levels for the Partnership's five mini-storage facilities averaged
86.4% for the year ended December 31, 1996, compared to 87.4%  for  the year 
ended December 31, 1995.  The Partnership continued to increase rental rates
where  market conditions  made such increases feasible.  The  Partnership is
continuing its marketing efforts to attract and keep new tenants in its various
mini-storage facilities.  Operating expenses decreased by approximately $23,100
(3.3%) primarily due to decreases in yellow pages advertising costs, repairs
and  maintenance,  real  estate  taxes and salaries and wages.  General  and 
administrative expenses increased by approximately $14,200 (6.4%)  primarily
due to increases in property management fees and  other taxes.  As  property 
management fees are computed as a percentage of  rental  income increases in
rental income resulted in commensurate increases in property management fees.
Other taxes, which consist of Maryland Non-Resident Withholding Taxes, were
paid by the  Partnership.  The  General  Partners' incentive management fee 
increased by approximately $14,400 (12.4%).  As  this  fee is computed as a 
percentage of distributions made to the Limited Partners, the 1996 increase in
distributions resulted in an incrased general partners' incentive management 
fee.

1995 COMPARED TO 1994

     Total  revenues  increased  from  $2,292,130 in 1994 to $2,529,555 in 1995,
while total  expenses  increased from  $1,428,672 to $1,561,433  resulting in an
increase  in net income from  $863,458 to  $968,122.  The  approximate  $217,000
(9.5%) increase in rental  revenues can be attributed  to higher unit rental 
rates.  Occupancy levels for the  Partnership's  five mini-storage  facilities  
averaged 87.4% for the year ended December 31, 1995, compared to 88.8% for the 
year ended December  31, 1994.  The  Partnership  continued to increase  rental 
rates where market conditions made such increases feasible.  Operating expenses 
increased by approximately $95,000 (15.9%) primarily due to increases in repairs
and maintenance, real estate taxes and  salaries  and wages.  General  and  
administrative  expenses  increased  by approximately  $24,000 (12.2%) primarily
due to increases in property management fees and other taxes partially  offset 
by lower  professional  fees. As property management  fees are computed as a  
percentage  of rental  income,  increases in rental income resulted in
commensurate  increases in property  management  fees.  Other taxes, which 
consist of Maryland Non-Resident Withholding Taxes, were paid by the 
Partnership.  The General Partners' incentive management fee increased by
approximately  $11,000  (10.5%).  As this fee is  computed  as a  percentage  of
distributions made to the Limited Partners,  the 1995 increases in distributions
resulted in an increased general partners' incentive management fee.


                         LIQUIDITY AND CAPITAL RESOURCES

     Net cash  provided  by  operating  activities  decreased  by  approximately
$13,000  (0.7%) in 1996 compared to 1995 primarily as a result of the decrease
in repayment of amounts formerly due from the general partners partially offset 
by the increase in net income and the deferral of payment of property management
and incentive management fees.  Net cash provided by operating activities 
increased by approximately $600,000 (45.5%) in 1995 compared to 1994 primarily
as a result of the increase in net income, repayment of amounts due from the
general partners and the deferral of payment of property management and 
incentive management fees.

     Cash used in financing  activities,  as set forth in the statements of cash
flows,  consists solely of cash distributions to partners.  The General Partners
determined  that effective with the second quarter 1994  distribution  which was
paid on July 15, 1994,  distributions to the limited partners would be increased
to an amount which yields a 7% annual return on the capital  contributed  by the
limited  partners from an annual  return of 6% paid in the prior year.  Further,
the General  Partners  determined  that  effective  with the third  quarter 1994
distribution  which was paid on  October  15,  1994,  distributions  to  limited
partners would be increased to an amount which yields an 8% annual return on the
capital contributed by the limited partners. In addition, a special distribution
of 1% was declared and paid on December 15, 1996.

     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 1994 and 1995. 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 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,  1996,  Messrs.  Robert J.
Conway and Joseph W. Conway, each of whom own approximately 45.43% 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 63 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 67 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 73 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, 1996,  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,  1996,  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, 1996,  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, 1996,  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, 1996. (b) No reports on
          Form 8K were filed during the fiscal year ended December 31, 1996.

                                   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 28, 1997
  ROBERT J. CONWAY, President
  (Chief Executive Officer, Chief
  Financial Officer, and Director)



By____________________________      Dated:  March 28, 1997
  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 28, 1997
  ROBERT J. CONWAY, President,
  Chief Executive Officer, Chief
  Financial Officer, and Director



By___________________________               Dated:  March 28, 1997
  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, 1996
--------------------------------------------------------------------------------

                        1996         1995        1994       1993        1992
                        ----         ----        ----       ----        ----

TOTAL
REVENUES              $2,667,128  $2,529,555 $ 2,292,130 $ 1,926,999 $ 1,756,575

TOTAL
EXPENSES               1,574,943   1,561,433   1,428,672   1,465,990   1,484,287
                      ---------- ----------- ----------- ----------- -----------

NET
INCOME                $1,092,185  $  968,122 $   863,458 $   461,009 $   272,288
                      ========== =========== =========== =========== ===========

TOTAL
ASSETS                $9,811,469  $9,890,145 $10,039,357 $10,059,109 $10,430,241
                      ========== =========== =========== =========== ===========

NET CASH
PROVIDED BY
OPERATING
ACTIVITIES            $1,906,898  $1,919,722 $ 1,319,398 $ 1,148,734 $   987,669
                      ========== =========== =========== =========== ===========
NET INCOME
PER LIMITED
PARTNERSHIP
UNIT                  $    34.02  $    30.16 $     26.90 $     14.36 $      8.48
                      ========== =========== =========== =========== ===========

CASH
DISTRIBUTIONS
PER $500
LIMITED
PARTNERSHIP
UNIT                  $    45.00  $    40.00 $     36.25 $     31.25 $     35.00
                      ========== =========== =========== =========== ===========



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, 1996.


                                                      Operating        Partners'
                                                        Results         Equity

Per financial statements                             $ 1,092,185    $ 7,802,814
Excess financial statement depreciation                  186,572      1,592,596
Capitalization of syndication costs                                   1,694,248
Accrued incentive management fee                         130,022      1,011,766
Accrued partner distributions                                           321,042 
Deferred rental revenues                                                 74,734
Acquisition costs capitalized for                                     
tax purposes                                                          1,146,936
                                                     -----------    -----------
Per Partnership income tax return                    $ 1,408,779    $13,644,136
                                                     ===========    ===========
Net taxable income per $500 limited
partnership unit                                     $     44.32
                                                     ===========
<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, 1996 and 1995                             F-2

    Statements of Income for the Three
        Years Ended December 31, 1996                                        F-3

    Statements of Changes in Partners' Equity for
        the Three Years Ended December 31, 1996                              F-4

    Statements of Cash Flows for the Three Years
        Ended December 31, 1996                                              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 VI, a
California Real Estate Limited  Partnership (the  "Partnership")  as of December
31, 1996 and 1995,  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, 1996. 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,
1996 and 1995,  and the results of its operations and its cash flows for each of
the three  years in the  period  ended  December  31,  1996 in  conformity  with
generally accepted accounting principles.


January 31, 1997
DELOITTE & TOUCHE
LONG BEACH, CALIFORNIA

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

BALANCE SHEETS
DECEMBER 31, 1996 AND 1995
--------------------------------------------------------------------------------


ASSETS                                                  1996             1995

CASH AND CASH EQUIVALENTS                           $ 1,455,407      $ 1,132,783

PROPERTY, At cost (net of accumulated
depreciation of $4,632,473
in 1996 and $4,091,582 in 1995)
(Notes 1, 2 and 3)                                    8,283,118        8,684,418

OTHER ASSETS                                             72,944           72,944
                                                    -----------      -----------
TOTAL                                               $ 9,811,469      $ 9,890,145
                                                    ===========      ===========

LIABILITIES AND PARTNERS' EQUITY

LIABILITIES:
Distribution due partners (Note 4)                  $   321,040      $   321,040
Incentive management fee payable to
general partners (Note 4)                             1,011,764          881,742
Property management fees payable (Note 1)               553,299          422,265
Customer deposits and other liabilities                 122,552          109,785
                                                    -----------      -----------
Total liabilities                                     2,008,655        1,734,832
                                                    -----------      -----------
PARTNERS' EQUITY (Notes 1 and 4):
General partners                                        (64,000)        (60,475)
Limited partners (31,783 limited
partnership units outstanding
at December 31, 1996 and 1995)                        7,866,814        8,215,788
                                                   ------------      -----------
Total partners' equity                                7,802,814        8,155,313
                                                   ------------      -----------
TOTAL                                               $ 9,811,469      $ 9,890,145
                                                   ============      ===========

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, 1996
--------------------------------------------------------------------------------


                                               1996         1995         1994

REVENUES:
Rental revenues                             $2,620,682   $2,495,544   $2,278,057
Interest income                                 46,446       34,011       14,073
                                            ----------   ----------   ----------
Total revenues                               2,667,128    2,529,555    2,292,130
                                            ----------   ----------   ----------
EXPENSES:
 Depreciation (Note 2)                         540,890      532,889      529,431
 Operating expenses (Note 1)                   669,469      692,615      598,094
 General and administrative                    234,562      220,353      196,407
 General partners' incentive
  management fee (Note 4)                      130,022      115,576      104,740
                                            ----------   ----------   ----------
Total expenses                               1,574,943    1,561,433    1,428,672
                                            ----------   ----------   ----------
NET INCOME                                  $1,092,185   $  968,122   $  863,458
                                            ==========   ==========   ==========
AGGREGATE NET INCOME ALLOCATED
TO (Note 4):
Limited partners                            $1,081,263   $  958,441   $  854,823
General partners                                10,922        9,681        8,635
                                            ----------   ----------   ----------
TOTAL                                       $1,092,185   $  968,122   $  863,458
                                            ==========   ==========   ==========
NET INCOME PER LIMITED PARTNERSHIP
UNIT (Notes 2 and 4)                        $    34.02   $    30.16  $    26.90
                                            ==========   ==========   ==========

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, 1996
--------------------------------------------------------------------------------


                                         General       Limited
                                        Partners       Partners         Total

                                     
BALANCE AT JANUARY 1, 1994              (54,311)      8,825,977       8,771,666

 Net income                               8,635         854,823         863,458

 Distributions                          (11,638)     (1,152,133)     (1,163,771)
                                        -------      ----------      -----------
BALANCE AT DECEMBER 31, 1994            (57,314)      8,528,667       8,471,353

 Net income                               9,681         958,441         968,122

 Distributions                          (12,842)     (1,271,320)     (1,284,162)
                                        -------     -----------     -----------
BALANCE AT DECEMBER 31, 1995            (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
                                        =======      ==========      ==========


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, 1996
--------------------------------------------------------------------------------


                                            1996          1995          1994

CASH FLOWS FROM OPERATING ACTIVITIES:
Cash received from customers            $ 2,620,682   $ 2,501,640   $ 2,278,057
Interest and other income received           46,446        34,011        14,073 
Cash paid to suppliers and employees       (760,230)     (615,929)     (972,732)
                                         -----------   -----------   -----------
  Net cash provided by operating
  activities                              1,906,898     1,919,722     1,319,398

CASH FLOWS FROM FINANCING ACTIVITIES -
Distributions to partners                (1,444,684)   (1,284,162)   (1,083,511)

CASH FLOWS FROM INVESTING ACTIVITIES -
Additions to property                      (139,590)      (93,760)      (57,945)
                                        -----------    -----------   -----------
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS                            322,624       541,800       177,942 

CASH AND CASH EQUIVALENTS,
AT BEGINNING OF YEAR                      1,132,783       590,983       413,041
                                        -----------   -----------   ------------
CASH AND CASH EQUIVALENTS,
AT END OF YEAR                          $ 1,455,407   $ 1,132,783   $   590,983
                                        ===========   ===========   ============
RECONCILIATION OF NET INCOME TO NET
CASH PROVIDED BY OPERATING ACTIVITIES:
Net income                              $ 1,092,185   $   968,122   $   863,458
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation and amortization               540,890       532,889       529,431
Changes in assets and liabilities:
 Receivable from general partners                         271,362      (271,362)
 Other assets                                             (19,479)       (2,430)
 Incentive management fee payable to
  general partners                          130,022       115,576       104,740 
 Property management fee payable            131,034        36,087        88,881
 Customer deposits and other
  liabilities                                12,767        15,165         6,680
                                        -----------   -----------   ------------
NET CASH PROVIDED BY OPERATING
ACTIVITIES                              $ 1,906,898   $ 1,919,722   $ 1,319,398
                                        ===========   ===========   ============

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, 1996


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 
     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 $5,841,322.

     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 1996,
     1995 and 1994).

     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.  As of December 31, 1996, no impairment losses were
     required.

3.   PROPERTY
   
     As of December 31, 1996 and 1995, the total cost of property and 
     accumulated depreciation are as follows:

                                                    1996                1995

     Land                                        $ 2,089,882        $ 2,089,882
     Buildings and improvements                   10,825,708        10,686,118
                                                 -----------        ------------
     Total                                       $12,915,590       $12,776,000 
     Accumulated depreciation                     (4,632,472)       (4,091,582)
                                                 -----------       -----------
     Property, net                               $ 8,283,118       $ 8,684,418
                                                 ===========        ==========

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.

<PAGE>

INDEPENDENT AUDITORS' REPORT


To the Partners of
DSI Realty Income Fund X:

We have audited the financial statements of DSI Realty Income Fund X (the
"Partnership") as of December 31, 1996 and  1995, and for the three years
ended December 31, 1996, and have issued our report thereon dated January 31,
1997; such report is included elsewhere in this Form 10-K.  Our audits also 
included the financial statement schedule of DSI Realty Income Fund IX, 
listed in Item 14.  This financial statement schedule is the responsibility of
the Partnership's management.  Our responsibility is to express an opinion
based on our audits.  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.


January 31, 1997


<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   $ 2,309         $277,799  $1,717,492  $1,995,291   $779,446  12/87 02/87 20 Yrs
Crestwood,Illinois    None     205,960   1,631,179     3,211          205,960   1,634,390   1,840,350    741,351  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    804,667  01/88 04/87 20 Yrs
Forestville, Maryland None     755,000   2,278,110     9,145          755,000   2,287,255   3,042,255    961,573  07/88 08/87 20 Yrs
Troy, Michigan        None     536,606   3,148,119   210,589          536,606   3,358,708   3,895,314  1,345,435  06/88 06/88 20 Yrs
                              --------  ----------   -------         --------  ----------  ---------- ----------
                            $2,089,882 $10,533,248  $292,460       $2,089,882 $10,825,708 $12,915,590*$4,632,472
                            ==========  ==========  ========       ==========  ========== =========== ==========
</TABLE>

                                                     Real Estate     Accumulated
                                                        at Cost     Depreciation

               Balance at January 1, 1994             $12,624,295     $3,029,262
                 Additions                                 57,945        529,431
                                                      -----------     ----------
               Balance at December 31, 1995            12,682,240      3,558,693
                 Additions                                 93,760        532,889
                                                      -----------     ----------
               Balance at December 31, 1996            12,776,000      4,091,582
                 Additions                                139,590        540,890
                                                      -----------     ----------
               Balance at December 31, 1996           $12,915,590     $4,632,472
                                                      ===========     ==========

The total cost at the end of the  period for  Federal  income tax  purposes  was
approximately $10,975,000.
<PAGE>

                                    EXHIBIT 2
                                 March 28, 1997

                      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,
1996 and 1996, 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, 1996
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, 1996 and December 31, 1995 were as follows:

Location of Property               Average Occupancy          Average Occupancy
                                   Levels for the             Levels for the
                                   Year Ended                 Year Ended
                                   Dec. 31, 1996              Dec. 31, 1995

Crestwood,IL                         83%                         83%

Forestville, MD                      90%                         89%

Groesbeck Hwy, MI                    88%                         90%

Ryan Rd, MI                          86%                         86%

Troy, MI                             85%                         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) 424-2655.

     If you would like a copy of the  Partnership's  Annual  Report on Form 10-K
for the year ended  December  31, 1996 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