<PAGE>
 
                                 UNITED STATES
                      SECURITIES AND EXCHANGE COMMISSION

                          Washington, D.C. 20549-1004

                                   FORM 10-Q
 
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
    ACT OF 1934
 
    For the period ended                    March 31, 1997
                           -----------------------------------------------------
                                     OR
 
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
    ACT OF 1934
 
    For the transition period from                      to
                                   ---------------------   ---------------------
 
    Commission File Number                      0-14121
                           -----------------------------------------------------
          
 
               First Capital Income Properties, Ltd. - Series X
--------------------------------------------------------------------------------
            (Exact name of registrant as specified in its charter)
 
           Florida                                              59-2417973
-------------------------------                            ---------------------
(State or other jurisdiction of                              (I.R.S. Employer
incorporation or organization)                              Identification No.)
 

Two North Riverside Plaza, Suite 1100, Chicago, Illinois        60606-2607
--------------------------------------------------------   ---------------------
(Address of principal executive offices)                        (Zip Code)
 
 
                                (312) 207-0020
--------------------------------------------------------------------------------
             (Registrant's telephone number, including area code)
 
                                Not applicable
--------------------------------------------------------------------------------
     (Former name, former address and former fiscal year, if changed since
                                 last report)
 
 
Indicate by check mark whether the registrant (1) 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 90 days. Yes  X   No     
                                       ---     ---

Documents incorporated by reference:

The First Amended and Restated Certificate and Agreement of Limited Partnership
filed as Exhibit A to the Partnership's Prospectus dated September 25, 1984,
included in the Partnership's Registration Statement on Form S-11, is
incorporated herein by reference in Part I of this report.
<PAGE>
 
BALANCE SHEETS
(All dollars rounded to nearest 00s)
 
<TABLE>
<CAPTION>
                                                      March 31,
                                                        1997      December 31,
                                                     (Unaudited)      1996
------------------------------------------------------------------------------
<S>                                                  <C>          <C>
ASSETS
Investment in commercial rental properties:
 Land                                                $ 3,928,400  $ 3,928,400
 Buildings and improvements                           18,171,900   18,171,900
------------------------------------------------------------------------------
                                                      22,100,300   22,100,300
Accumulated depreciation and amortization             (7,802,600)  (7,684,100)
------------------------------------------------------------------------------
 Total investment properties, net of accumulated
  depreciation and amortization                       14,297,700   14,416,200
Cash and cash equivalents                              2,620,800    1,925,700
Investment in debt securities                                         496,300
Rents receivable                                         483,700      436,000
Escrow deposits                                           41,600       19,600
Other assets (primarily loan acquisition costs, net
 of accumulated amortization of $231,800 and
 $221,900, respectively)                                  85,600       91,000
------------------------------------------------------------------------------
                                                     $17,529,400  $17,384,800
------------------------------------------------------------------------------
LIABILITIES AND PARTNERS' CAPITAL
Liabilities:
 Mortgage loans payable                              $10,917,100  $11,194,100
 Accounts payable and accrued expenses                   713,700      569,800
 Due to Affiliates                                        26,200       33,200
 Security deposits                                        19,800       22,500
 Other liabilities                                       246,900       38,700
------------------------------------------------------------------------------
                                                      11,923,700   11,858,300
------------------------------------------------------------------------------
Partners' capital:
 General Partner (deficit)                               (95,200)     (96,000)
 Limited Partners (43,861 units issued and
  outstanding)                                         5,700,900    5,622,500
------------------------------------------------------------------------------
                                                       5,605,700    5,526,500
------------------------------------------------------------------------------
                                                     $17,529,400  $17,384,800
------------------------------------------------------------------------------
</TABLE>
STATEMENTS OF PARTNERS' CAPITAL
For the quarter ended March 31, 1997 (Unaudited)
and the year ended December 31, 1996
(All dollars rounded to nearest 00s)
 
<TABLE>
<CAPTION>
                                            General     Limited
                                            Partner    Partners       Total
-------------------------------------------------------------------------------
<S>                                         <C>       <C>          <C>
Partners' (deficit) capital, January 1,
 1996                                       $(72,700) $ 7,931,300  $ 7,858,600
Net (loss) for the year ended December 31,
 1996                                        (23,300)  (2,308,800)  (2,332,100)
-------------------------------------------------------------------------------
Partners' (deficit) capital, December 31,
 1996                                        (96,000)   5,622,500    5,526,500
Net income for the quarter ended March 31,
 1997                                            800       78,400       79,200
-------------------------------------------------------------------------------
Partners' (deficit) capital, March 31,
 1997                                       $(95,200) $ 5,700,900  $ 5,605,700
-------------------------------------------------------------------------------
</TABLE>
    The accompanying notes are an integral part of the financial statements.
                                                                               2
<PAGE>
 
STATEMENTS OF INCOME AND EXPENSES
For the quarters ended March 31, 1997 and 1996
(Unaudited)
(All dollars rounded to nearest 00s
except per Unit amounts)
 
<TABLE>
<CAPTION>
                                                      1997       1996
------------------------------------------------------------------------
<S>                                                <C>        <C>
Income:
 Rental                                            $1,042,700 $1,044,900
 Interest                                              31,200     33,000
------------------------------------------------------------------------
                                                    1,073,900  1,077,900
------------------------------------------------------------------------
Expenses:
 Interest                                             254,100    275,600
 Depreciation and amortization                        128,400    152,900
 Property operating:
  Affiliates                                           30,600     76,600
  Nonaffiliates                                       289,300    203,400
 Real estate taxes                                    130,900    117,900
 Insurance--Affiliate                                  14,900     13,900
 Repairs and maintenance                              120,200    100,400
 General and administrative:
  Affiliates                                            2,500      9,000
  Nonaffiliates                                        23,800     32,600
------------------------------------------------------------------------
                                                      994,700    982,300
------------------------------------------------------------------------
Net income                                         $   79,200 $   95,600
------------------------------------------------------------------------
Net income allocated to General Partner            $      800 $    1,000
------------------------------------------------------------------------
Net income allocated to Limited Partners           $   78,400 $   94,600
------------------------------------------------------------------------
Net income allocated to Limited Partners per Unit
 (43,861 Units outstanding)                        $     1.79 $     2.16
------------------------------------------------------------------------
</TABLE>
STATEMENTS OF CASH FLOWS
For the quarters ended March 31, 1997 and 1996
(Unaudited)
(All dollars rounded to nearest 00s)
 
<TABLE>
<CAPTION>
                                                             1997        1996
---------------------------------------------------------------------------------
<S>                                                       <C>         <C>
Cash flows from operating activities:
 Net income                                               $   79,200  $   95,600
 Adjustments to reconcile net income to net cash
  provided by operating activities:
  Depreciation and amortization                              128,400     152,900
  Changes in assets and liabilities:
   (Increase) in rents receivable                            (47,700)    (48,100)
   (Increase) decrease in other assets                        (4,500)        700
   Increase in accounts payable and accrued expenses         143,900      83,600
   (Decrease) increase in due to Affiliates                   (7,000)     15,000
   Increase in other liabilities                             208,200       1,300
---------------------------------------------------------------------------------
    Net cash provided by operating activities                500,500     301,000
---------------------------------------------------------------------------------
Cash flows from investing activities:
 Payments for capital and tenant improvements                           (201,200)
 Decrease in investments in debt securities                  496,300
 (Increase) decrease in escrow deposits                      (22,000)     74,900
---------------------------------------------------------------------------------
    Net cash provided by (used for) investing activities     474,300    (126,300)
---------------------------------------------------------------------------------
Cash flows from financing activities:
 Principal payments on mortgage loans payable               (277,000)   (369,900)
 (Decrease) increase in security deposits                     (2,700)        200
---------------------------------------------------------------------------------
    Net cash (used for) financing activities                (279,700)   (369,700)
---------------------------------------------------------------------------------
Net increase (decrease) in cash and cash equivalents         695,100    (195,000)
Cash and cash equivalents at the beginning of the period   1,925,700   2,464,100
---------------------------------------------------------------------------------
Cash and cash equivalents at the end of the period        $2,620,800  $2,269,100
---------------------------------------------------------------------------------
Supplemental information:
 Interest paid during the period                          $  254,000  $  254,400
---------------------------------------------------------------------------------
</TABLE>
    The accompanying notes are an integral part of the financial statements.
3
<PAGE>
 
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
March 31, 1997
 
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
 
DEFINITION OF SPECIAL TERMS:
Capitalized terms used in this report have the same meaning as those terms have
in the Partnership's Registration Statement filed with the Securities and
Exchange Commission on Form S-11. Definitions of these terms are contained in
Article III of the First Amended and Restated Certificate and Agreement of
Limited Partnership, which is included in the Registration Statement and
incorporated herein by reference.
 
ACCOUNTING POLICIES:
The financial statements have been prepared in accordance with generally
accepted accounting principles ("GAAP"). Under this method of accounting,
revenues are recorded when earned and expenses are recorded when incurred.
 
Preparation of the Partnership's financial statements in conformity with GAAP
requires management to make estimates and assumptions that affect the reported
amounts of assets and liabilities and disclosure of contingent 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.
 
The financial information included in these financial statements is unaudited;
however, in management's opinion, all adjustments (consisting of only normal,
recurring accruals) necessary for a fair presentation of the results of
operations for the periods included have been made. Results of operations for
the three months ended March 31, 1997 are not necessarily indicative of the
operating results for the year ending December 31, 1997.
 
The financial statements include the Partnership's 50% interest in one joint
venture and its 25% interest in another joint venture with Affiliated
partnerships. These joint ventures were formed for the purpose of each
acquiring a 100% interest in certain real property and are operated under the
common control of the General Partner. Accordingly, the Partnership's pro rata
share of the venture's revenues, expenses, assets, liabilities and Partners'
capital was included in the financial statements.
 
Commercial rental properties held for investment are recorded at cost, net of
any provisions for value impairment, and depreciated (exclusive of amounts
allocated to land) on the straight-line method over their estimated useful
lives. Upon classifying a commercial rental property as held for disposition,
no further depreciation or amortization of such property is provided for in the
financial statements. Lease acquisition fees are recorded at cost and amortized
on straight-line method over the life of each respective lease. Repair and
maintenance costs are expensed as incurred; expenditures for improvements are
capitalized and depreciated on the straight-line method over the estimated life
of such improvements.
 
The Partnership evaluates its rental property when conditions exist which may
indicate that it is probable that the sum of expected future cash flows
(undiscounted) from such property is less than its carrying basis. Upon
determination that a permanent impairment has occurred, the rental property is
reduced to estimated fair value. Management was not aware of any indicator that
would result in a significant impairment loss during the periods reported.
 
Loan acquisition costs are amortized on the straight-line method over the term
of the mortgage loan made in connection with the acquisition of Partnership
properties or refinancing of Partnership loans. When a property is disposed of
or a loan is refinanced, the related loan acquisition costs and accumulated
amortization are removed from the respective accounts and any unamortized
balance is expensed.
 
Cash equivalents are considered all highly liquid investments with a maturity
of three months or less when purchased.
 
Certain reclassifications have been made to the previously reported 1996
statements in order to provide comparability with the 1997 statements. These
reclassifications had no effect on net income or Partners' (deficit) capital.
 
Reference is made to the Partnership's annual report for the year ended
December 31, 1996 for a description of other accounting policies and additional
details of the Partnership's financial condition, results of operations,
changes in Partners' capital and changes in cash balances for the year then
ended. The details provided in the notes thereto have not changed except as a
result of normal transactions in the interim or as otherwise disclosed herein.
 
2. RELATED PARTY TRANSACTIONS:
 
In accordance with the Partnership Agreement, subsequent to September 24, 1985,
the Termination of the Offering, the General Partner is entitled to 10% of
distributable Cash Flow (as defined in the Partnership Agreement), as a
Partnership Management Fee. For the three months ended March 31, 1997 and 1996,
in conjunction with the suspension of distributions of Cash Flow (as defined in
the Partnership Agreement) to Limited Partners, the General Partner was not
paid a Partnership Management Fee.
 
In accordance with the Partnership Agreement, Net Profits (exclusive of Net
Profits from the sale or disposition of Partnership properties) are allocated
to the General Partner in an amount equal to the greater of 1% of such Net
Profits or the Partnership Management Fee paid by the Partnership to the
General Partner during such year, and the balance, if any, to the Limited
Partners. Net Losses (exclusive of Net Losses from the sale, disposition and
provision for value impairment of Partnership properties) are allocated 1% to
the General Partner and 99% to the Limited Partners. Net Profits from the sale
or disposition of a Partnership property are allocated: first, prior to giving
effect to any distribution of Sale or Refinancing Proceeds from the
transaction, to all Partners with negative balances in their Capital Accounts,
pro rata in proportion to such respective negative balances, to the extent of
the total of such negative balances; second, to the General Partner in an
amount necessary to make the positive balance in its Capital Account equal to
the amount of Sale or Refinancing Proceeds to be distributed to the General
Partner with respect to the sale or disposition of such property; and third,
the balance, if any, to the Limited Partners. Net Losses from the sale,
disposition or provision for value impairment of Partnership properties are
allocated: first, after giving effect to any distribution of Sale or
Refinancing Proceeds from the transaction, to all Partners with positive
balances in their Capital Accounts, pro rata proportion to such respective
positive balances, to the extent of the total amount of such positive balances;
and second,
 
                                                                               4
<PAGE>
 
the balance, if any, 1% to the General Partner and 99% to the Limited Partners.
Notwithstanding anything to the contrary, there shall be allocated to the
General Partner not less than 1% of all items of Partnership income, gain,
loss, deduction and credit during the existence of the Partnership. For the
quarters ended March 31, 1997 and 1996, the General Partner was allocated Net
Profits of $800 and $1,000, respectively.
 
Fees and reimbursements paid and payable/(receivable) by the Partnership
to/(from) Affiliates during the quarter ended March 31, 1997 were as follows:
 
<TABLE>
<CAPTION>
                                                                 Payable
                                                        Paid   (Receivable)
----------------------------------------------------------------------------
<S>                                                    <C>     <C>
Property and asset management and leasing fees (a)     $38,000     $ (1,000)
Reimbursement of property insurance premiums, at cost     None       14,900
Real estate commission (b)                                None       10,000
Reimbursement of expenses, at cost:
 --Accounting                                            1,400        2,000
 --Investor communication                                  400          300
 --Legal                                                16,000         None
----------------------------------------------------------------------------
                                                       $55,800     $ 26,200
----------------------------------------------------------------------------
</TABLE>
(a) Effective December 31, 1996, the Affiliate providing property management
 and certain leasing services to the Partnership's properties, sold its
 interest in the property management agreements to an unrelated party. The
 payments included in the above table relate to asset management fees and prior
 period property management fees.
(b) As of March 31, 1997, the Partnership owed $10,000 to the General Partner
 for a real estate commission earned in connection with the sale of a
 Partnership property. This commission has been accrued but not paid. In
 accordance with the Partnership Agreement, the Partnership shall not pay the
 General Partner or any Affiliate a real estate commission from the sale of a
 Partnership property until Limited Partners have received cumulative
 distributions of Sale or Refinancing Proceeds equal to 100% of their Original
 Capital Contribution, plus a cumulative return (including all Cash Flow (as
 defined in the Partnership Agreement) which has been distributed to the
 Limited Partners from the initial investment date) of 6% simple interest per
 annum on their Capital Investment.
 
3. MORTGAGE LOANS PAYABLE:
 
Mortgage loans payable at March 31, 1997 and December 31, 1996 consisted of the
following non-recourse loans:
 
<TABLE>
<CAPTION>
                          Partnership's Share of
                           Principal Balance at   Average
  Property Pledged as     ----------------------- Interest   Maturity
       Collateral           3/31/97    12/31/96     Rate       Date
---------------------------------------------------------------------
<S>                       <C>         <C>         <C>        <C>
Glendale Center Shopping
 Mall (50%)               $ 7,079,800 $ 7,339,500   9.98%(a)   1/1/99
Regency Park Shopping
 Center (25%)               3,837,300   3,854,600   7.50%    12/31/97
---------------------------------------------------------------------
                          $10,917,100 $11,194,100
---------------------------------------------------------------------
</TABLE>
(a) This interest rate represents the weighted average for the three months
 ended March 31, 1997. This interest rate is subject to monthly change in
 accordance with the provisions of the loan agreement. As of March 31, 1997,
 the interest rate on this loan was 9.94%.
 
For additional information regarding the mortgage loans payable, see Notes to
the Financial Statements included in the Partnership's Annual Report for the
year ended December 31, 1996.
 
4. ASSET HELD FOR DISPOSITION:
 
During 1996, the Partnership modified its mortgage obligation on the loan
secured by Regency Park Shopping Center ("Regency"). Among other provisions,
the modification provides for a maturity date of December 31, 1997. The
Partnership is marketing Regency for sale and expects to complete a sale
transaction prior to December 31, 1997. Accordingly, the Partnership has
classified Regency as "Held for Disposition". The Partnership's carrying basis,
net of accumulated depreciation and amortization, of Regency on the Balance
Sheet as of March 31, 1997 was $3,875,800 and does not exceed the estimated
fair value, less costs to sell. The Partnership's share of net income (loss) of
Regency, included in the Statements of Income and Expenses for the three months
ended March 31, 1997 and 1996 was $52,100 and $(5,200), respectively. The 1996
loss includes depreciation and amortization of $28,100. In connection with
classifying Regency as "Held for Disposition", no depreciation or amortization
was recorded against the property during 1997.
 
5
<PAGE>
 
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
 
Reference is made to the Partnership's annual report for the year ended
December 31, 1996 for a discussion of the Partnership's business.
 
OPERATIONS
The table below is a recap of the Partnership's share of certain operating
results of each of its remaining properties for the quarters ended March 31,
1997 and 1996. The discussion following the table should be read in conjunction
with the financial statements and notes thereto appearing in this report.
 
<TABLE>
<CAPTION>
                               Comparative
                            Operating Results
                                   (a)
                             For the Quarters
                                  Ended
                             3/31/97  3/31/96
-----------------------------------------------
<S>                         <C>       <C>
GLENDALE CENTER SHOPPING MALL (50%)
Rental revenues             $ 869,000 $895,400
-----------------------------------------------
Property net income         $  22,100 $109,500
-----------------------------------------------
Average occupancy                 91%      91%
-----------------------------------------------
REGENCY PARK SHOPPING CENTER (25%)
Rental revenues             $ 173,700 $149,400
-----------------------------------------------
Property net income (loss)  $  52,100 $ (5,200)
-----------------------------------------------
Average occupancy                 92%      87%
-----------------------------------------------
</TABLE>
(a) Excludes certain income and expense items which are not directly related to
  individual property operating results such as Partnership interest income and
  general and administrative expenses.
 
Net income decreased by $16,400 for the three months ended March 31, 1997 when
compared to the three months ended March 31, 1996. The decrease was primarily
due to diminished operating results at Glendale Center Shopping Mall
("Glendale"). Partially offsetting the decrease was the improved operating
results at Regency Park Shopping Center ("Regency"), which was partially the
result of the 1997 absence of depreciation and amortization due to the
property's classification as "Held for Disposition". In addition, the decrease
was partially offset by a decrease in general and administrative expenses which
was due to a decrease in accounting fees, personnel costs and legal fees.
 
Rental revenues decreased by $2,200 for the three-month periods under
comparison. The decrease was primarily due to a decrease in percentage rental
income at Glendale which was due to diminished sales of its tenants. The
decrease was substantially offset by an increase in base rents and tenant
reimbursements for real estate taxes at Regency which was the result of an
increase in average occupancy.
 
Property operating expenses increased by $39,900 for the three-month periods
under comparison. The increase was primarily the result of increases in
advertising, utility and professional service costs at Glendale. The increase
in professional services was due to costs related to evaluating the market
conditions to explore the potential for sale of the property.
 
Repairs and maintenance expenses increased by $19,800 for the three months
ended March 31, 1997 when compared to the three months ended March 31, 1996.
The increase was primarily due to increases in snow removal and energy plant
expenses at Glendale and in landscaping costs at Regency.
 
Real estate tax expense increased by $13,000 for the three months ended March
31, 1997 when compared to the three months ended March 31, 1996. The increase
was primarily the result of a budgeted increase in real estate taxes at
Glendale.
 
Interest expense decreased by $21,500 for the periods under comparison. The
decrease was primarily due to the effects of principal payments made during the
past 15 months on the Partnership's mortgage loans.
 
To increase and/or maintain occupancy levels at the Partnership's properties,
the General Partner, through its asset and property management groups,
continues to take the following actions: 1) implementation of marketing
programs, including hiring of third-party leasing agents or providing on-site
leasing personnel, advertising, direct mail campaigns and development of
property brochures; 2) promotion of local broker events and networking with
local brokers; 3) networking with national level retailers; 4) cold-calling
other businesses and tenants in the market area; and 5) providing rental
concessions or competitively pricing rental rates depending on market
conditions.
 
LIQUIDITY AND CAPITAL RESOURCES
One of the Partnership's objectives is to dispose of its properties when market
conditions allow for the achievement of the maximum possible sales price. In
the interim, the Partnership continues to manage and maintain its properties.
Cash Flow (as defined in the Partnership Agreement) is generally not equal to
net income or cash flows as determined by generally accepted accounting
principles ("GAAP"), since certain items are treated differently under the
Partnership Agreement than under GAAP. Management believes that to facilitate a
clear understanding of the Partnership's operations, an analysis of Cash Flow
(as defined in the Partnership Agreement) should be examined in conjunction
with an analysis of net income or cash flows as determined by GAAP. The
following table includes a reconciliation of Cash Flow (as defined in the
Partnership Agreement) to net cash provided by operating activities as
determined by GAAP. Such amounts are not indicative of actual distributions to
Partners and should not necessarily be considered as an alternative to the
results disclosed in the Statements of Income and Expenses and Statements of
Cash Flow.
 
<TABLE>
<CAPTION>
                                                          Comparative
                                                       Cash Flow Results
                                                       For the Quarters
                                                             Ended
                                                       3/31/97    3/31/96
---------------------------------------------------------------------------
<S>                                                   <C>        <C>
Cash Flow (Deficit) (as defined in the Partnership
 Agreement)                                           $ (69,400) $(81,500)
Items of reconciliation:
 Principal payments on mortgage loans                   277,000    330,000
 (Increase) in current assets                           (52,200)   (47,400)
 Increase in current liabilities                        345,100     99,900
---------------------------------------------------------------------------
Net cash provided by operating activities             $ 500,500  $ 301,000
---------------------------------------------------------------------------
Net cash provided by (used for) investing activities  $ 474,300  $(126,300)
---------------------------------------------------------------------------
Net cash (used for) financing activities              $(279,700) $(369,700)
---------------------------------------------------------------------------
</TABLE>
 
                                                                               6
<PAGE>
 
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS (CONTINUED)
 
 
The decrease in Cash Flow (Deficit) (as defined in the Partnership Agreement)
of $12,100 for the three months ended March 31, 1997 when compared to the three
months ended March 31, 1996 was primarily due to decreased principal payments
on the Partnership's mortgage debt partially offset by the decrease in
operating results, net of depreciation and amortization, as previously
discussed.
 
The increase in the Partnership's cash position of $695,100 during the three
months ended March 31, 1997 was primarily the result of net cash provided by
operating activities and the maturities of the Partnership's investments in
debt securities exceeding cash used for principal payments on mortgage debt.
Liquid assets of the Partnership as of March 31, 1997 were comprised of amounts
held for working capital purposes.
 
The increase in net cash provided by operating activities of $199,500 for the
three months ended March 31, 1997 when compared to the three months ended March
31, 1996 was primarily the result of the receipt of real estate tax refunds at
Glendale. Partially offsetting this increase was the decrease in operating
results, as previously discussed.
 
Net cash (used for) provided by investing activities changed from $(126,300)
for the three months ended March 31, 1996 to $474,300 for the three months
ended March 31, 1997. The change was primarily the result of the maturity of
the Partnership's investments in debt securities. Also contributing to this
change was a decrease in expenditures for capital and tenant improvements and
leasing costs at the Partnership's properties. The Partnership maintains
working capital reserves to pay for capital expenditures such as building and
tenant improvements and leasing costs. During the three months periods ended
March 31, 1997, the Partnership made no expenditures for building and tenant
improvements and has budgeted to spend approximately $550,000 on Glendale
during the remainder of 1997. In connection with the anticipated sale of
Regency, no capital expenditures are expected during the remainder of 1997.
Actual amounts expended may vary depending on a number of factors.
 
As more fully discussed in the Partnership's Annual Report for the year ended
December 31, 1996, the future tenancy level at Glendale is uncertain. The
potential loss of one or both of its anchor tenants at their lease termination
dates (January 2001) would have a dramatic negative impact on the operations of
the property. The General Partner is exploring alternatives for Glendale, which
include, but are not limited to, pursuing other tenants and the sale of the
property.
 
Net cash used for financing activities decreased by $90,000 for the three
months ended March 31, 1997 when compared to the three months ended March 31,
1996. The decrease was primarily the result of the 1996 annual cash flow
principal payment made in March 1997 on the mortgage loan collateralized by
Glendale being less than the comparable 1995 payment made in March 1996. The
mortgage loan collateralized by Glendale contains provisions that require that
a portion of the cash generated by Glendale be utilized to reduce the
outstanding mortgage balance.
 
As a result of the future tenancy matters of Glendale together with the cash
required by its mortgage loan, both referred to above, the General Partner
believes that it is in the best interest of the Partnership to retain all cash
available. Accordingly, distributions to Partners continue to be suspended. The
amount of future distributions to Partners will ultimately be dependent upon
the performance of the Partnership's investments as well as the General
Partner's determination of the amount of cash necessary to supplement working
capital reserves to meet future liquidity requirements of the Partnership.
There can be no assurance as to the amount and/or availability of cash for
future distributions to Partners.
 
Based upon the current estimated value of its assets, net of its outstanding
liabilities, together with its expected operating results and capital
expenditure requirements, the Partnership's cumulative distributions to its
Limited Partners from inception through the termination of the Partnership will
be significantly less than such Limited Partners' original Capital Investment.
 
7
<PAGE>
 
                          PART II.  OTHER INFORMATION

Item 6. Exhibits and Reports on Form 8-K:
-----------------------------------------

        (a) Exhibits:  None

        (b) Reports on Form 8-K:

            There were no reports filed on Form 8-K during the quarter ended 
March 31, 1997.
<PAGE>
 
                                  SIGNATURES

Pursuant to the requirements 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.

                               FIRST CAPITAL INCOME PROPERTIES, LTD. - SERIES X


                               By:  FIRST CAPITAL CORPORATION 
                                    GENERAL PARTNER

Date: May 15, 1997             By:  /s/  DOUGLAS CROCKER II
      ------------                  -------------------------------------
                                         DOUGLAS CROCKER II
                                    President and Chief Executive Officer

Date: May 15, 1997             By:  /s/  NORMAN M. FIELD
      ------------                  -------------------------------------
                                         NORMAN M. FIELD
                                    Vice President - Finance and Treasurer