<PAGE>
 
                      SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, DC  20549

                                   FORM 10-K

(Mark One)
[X]  Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange
Act of 1934 (Fee Required)

     For the Year Ended December 31, 1996

[_]  Transition Report Pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934 (No Fee Required)

     Commission File Number 0-8942

                             DE ANZA PROPERTIES-X
            (Exact Name of Registrant as Specified in Its Charter)

California                                       95-3005938
(State or Other Jurisdiction of                  (I.R.S. Employer
Incorporation or Organization)                   Identification Number)

9171 Wilshire Boulevard, Suite 627               90210
Beverly Hills, California                        (Zip Code)
(Address of Principal Executive Offices)
 
      (310) 550-1111 (Registrant's Telephone Number, Including Area Code)

         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 (Title of Class)

     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  [_]

     Indicate by check mark if disclosure of delinquent filers pursuant to Item
405 of Regulation S-K 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]

     State the aggregate market value of the voting stock held by non-affiliates
of the Partnership.

                        $22,633,000 (See Item 5 Herein)

                      DOCUMENTS INCORPORATED BY REFERENCE.

     Portions of the Prospectus of the registrant, dated August 9, 1978 filed
pursuant to Rule 424(b) under the Securities Act of 1933, as amended, and
subsequently filed on July 11, 1989 with Form 8 are incorporated by reference in
Parts I, II, III and IV hereof.

     Page 1 of 47 pages contained herein. Exhibit Index located on page 17
herein.
<PAGE>
 
                                    PART I.

ITEM 1.   BUSINESS.
          --------

          The registrant, De Anza Properties - X (the "Partnership")/1/ is a
limited partnership formed on September 16, 1977 under the California Uniform
Limited Partnership Act to acquire, develop, maintain and operate income-
producing residential real estate properties, including apartment complexes and
mobile home parks, and to engage in general business activities related thereto.

          The Partnership considers its business to represent one industry
segment, investment in real property, specifically mobile home parks and
apartment complexes.

          After selling two of its three properties in 1995 and 1994, as of
December 31, 1996 the Partnership owned an apartment complex (the "Property"). A
description of the Property owned by the Partnership is set forth in Item 2
hereof and is incorporated herein by reference. The Property was sold on
February 19, 1997.

          On July 11, 1995, the Partnership sold Aptos Pines, its sole
mobilehome park remaining after the sale of Colonies of Margate in 1994, to the
Aptos Pines Homeowners Association, as further discussed in Item 7 (1),
Liquidity, which is incorporated herein by reference.

          The Partnership's apartment project is located in an upscale urban
area. The project attracts primarily young professionals and business people due
in part to the property's convenient location near major office centers. The
property contains recreational facilities and services that offer its residents
a quality lifestyle. The apartment project competes with other apartment
projects in the area, some of which are newer. Competition is a significant
factor affecting the occupancy and results of operations of the Partnership's
apartment project.

          A description of the general development of the business of the
Partnership since the beginning of the year for which this report is being filed
is set forth in Item 7(3), Results of Operations, and is incorporated herein by
reference.

          Information regarding the Partnership's revenues, profitability and
identifiable assets attributable to each of the Partnership's geographic areas
is set forth in Item 8, Note 8 to the Financial Statements, in the Schedules of
Projects' Operations attached thereto, and in the description of the Properties
set forth in Item 2 hereof, which are incorporated herein by reference.

          The Partnership has no real estate investments which are located
outside of the United States.

          As of the date of this report, the Partnership has no employees.

--------------------
/1/  A Registration Statement (File No. 2-59904) was filed on behalf of the
     Partnership by its general partners (the "General Partners"), and the
     securities offered and sold thereunder were units of limited partnership
     interests.

                                      -2-
<PAGE>
 
ITEM 2.   PROPERTIES.
          ----------

          The Partnership purchased three Properties using the capital raised.
The Partnership sold one of its Properties -- Aptos Pines -- to a third party on
July 11, 1995.  See further details in Item 7(1), Liquidity, and Item 8, Note 3
to the Financial Statements, both of which are incorporated herein by reference.
The Partnership sold Colonies of Margate on August 18, 1994.  The Partnership
also sold Woodbridge Meadows Apartments on February 19, 1997.  Following is a
description of each Property; for the sold properties, the descriptions are as
of the time of sale.

          De Anza Aptos Pines. "Aptos Pines" is a mixed-aged mobile home
          -------------------
community primarily serving older working adults. Located on 28 acres of
hillside property in Santa Cruz County, California, Aptos Pines consists of 170
homesites in a rural, wooded setting. Clubhouse facilities include a lounge with
a fireplace and seating areas, as well as a billiard room, kitchen, banquet area
and laundry equipment. Outdoor amenities include a pool, sun deck and whirlpool
spa. Six golf courses, the Santa Cruz Yacht Harbor and Seacliff State Beach are
located within ten miles of Aptos Pines. Aptos Pines is subject to the Rent
Control Ordinance of the County of Santa Cruz, which limits rent increases to
50% of the Consumer Price Index of the San Francisco/Oakland/San Jose area.
Residents were billed separately for all utilities. Aptos was sold on July 11,
1995 to a third party.

          Colonies of Margate. "Margate" is a 120-acre retirement mobile home
          -------------------
community in Margate, Florida, between Fort Lauderdale and Boca Raton. The 819
homesites are served by two clubhouses, both with swimming pools and one with
card rooms, a pool room, exercise rooms, a kitchen and a banquet area. Outdoor
recreational facilities include tennis courts, bocci and shuffleboard courts,
handball courts and barbecue areas. The south side of Margate is bordered by a
navigable inland waterway with a boat launch ramp and fishing area. Colonial
Drive, the community's long, curvilinear entrance road, is shared by Margate
Community Hospital, a nursing home and a high-rise medical office building,
which provide emergency and continuing care. Residents were billed separately
for all utilities. Margate was sold on August 18, 1994 to a third party.

          Woodbridge Meadows Apartments.  "Woodbridge" is a 375-unit, 17-acre,
          -----------------------------
mixed-aged apartment complex located in the planned community of Woodbridge
Village in the city of Irvine, California.  Irvine is considered to be a highly
desirable residential community near Newport Center, the Irvine industrial
complex, and the yachting and beach resort city of Newport Beach.  Surrounded by
expensive single-family residences, Woodbridge is one of several apartment
properties in Woodbridge Village.  The community is densely landscaped with
water streams and footbridges, as well as a clubhouse, outdoor swimming pool,
two whirlpool spas, laundry facilities, and complete access to the 20 tennis
courts, bike trails, adult and child social activities and other recreational
facilities available to residents of the larger Woodbridge Village, including
several pools, parks and barbecue areas.  Woodbridge offered 

                                      -3-
<PAGE>
 
month-to-month leases for furnished corporate units and six-month and one-year
leases for other units. Rental rates included water and sewer service; tenants
are billed separately for electricity and gas.

          For a description of the terms of encumbrances relating to the
Properties, see the information set forth in Item 8, Note 4 to the Financial
Statements, which is incorporated herein by reference.

ITEM 3.   LEGAL PROCEEDINGS.
          -----------------

          None.

ITEM 4.   SUBMISSION OF MATTERS TO A VOTE OF SECURITY-HOLDERS.
          ---------------------------------------------------

          No matter was submitted during the quarter ended December 31, 1996.



                                   PART II.


ITEM 5.   MARKET FOR THE PARTNERSHIP'S COMMON EQUITY AND RELATED STOCKHOLDER
          ------------------------------------------------------------------
          MATTERS.
          -------

          (a)  Market Information.
               ------------------

               There is no public market for the Units of Limited Partnership
Interests and it is not anticipated that a public market for them will develop.
Accordingly, accurate information as to the market value of a Unit at any given
date is not available. The estimated aggregate market price shown on the cover
page of this report is simply the original capital contributed by the Limited
Partners and should not be relied upon as indicative of any bid or ask
quotations or transactions in the Limited Partnership Interests. Units are
transferable only on the books and records of the Partnership and are subject to
certain limitations.

          (b)  Holders.
               -------

               As of December 31, 1996, the approximate number of Unit holders
is 1,852, including General Partners who also hold Cash General Partner
Interests.

                                      -4-
<PAGE>
 
          (c)  Dividends.
               ---------

               The Partnership is a limited partnership and, accordingly, does
not pay dividends. It does, however, make quarterly distributions from
operations. During the years ended December 31, 1996, 1995 and 1994, $954,424,
$823,430 and $853,420 ($41.73, $36.01 and $37.32 per interest held),
respectively, was distributed from operations to the holders of Cash General
Partner Interests and to the Limited Partners of the Partnership. In addition,
during the years ended December 31, 1996, 1995 and 1994, $296,158, $255,511 and
$264,816 respectively, was distributed from operations to the General Partners.

               During 1995 and 1994, $181,000 and $7,133,000 ($7.91 and $312.01
per interest held) respectively was distributed to the holders of Cash General
Partner Interests and to the Limited Partners from the sale proceeds of Colonies
of Margate. Also in 1995, $3,872,732 ($169.34 per interest held) was distributed
to the holders of Cash General Partner Interests and to the Limited Partners
from the sale proceeds of Aptos Pines, and $392,268 was distributed to the
General Partners.

                                      -5-
<PAGE>
 
ITEM 6.   SELECTED FINANCIAL DATA.
          -----------------------

          The following table sets forth in comparative tabular form a summary
of selected financial data for each of the Partnership's last five years:

<TABLE>
<CAPTION>
                                                                Years Ended December 31,
                                              1996          1995          1994          1993          1992
                                           -----------   -----------   -----------   -----------   -----------
<S>                                        <C>           <C>           <C>           <C>           <C>
Operating revenues:                        $ 3,917,209   $ 4,274,052   $ 6,894,031   $ 7,775,005   $ 7,464,567
 
Gain on sale of property &
equipment:                                     143,365     2,258,041    15,297,374             -             -
 
Net income from continuing 
operations:                                $ 1,346,746     3,260,442    16,080,772       573,956       569,040
 
Net income from continuing operations
 per cash general and limited partner
 interest /1/:                                   44.94        125.85        680.60         20.36         18.91
 
Total assets:                               11,294,792    11,387,725    13,998,705    19,147,277    19,448,646
 
Long-term obligations:                       4,658,315     4,752,430     4,837,624    18,296,772    18,458,814
 
Cash distributions per partnership
 interest:
1.  Limited Partner /2/:                         41.73        213.27        349.34         42.92         42.71
2.  Cash General Partner /2/:                    41.73        213.27        349.34         42.92         42.71
3.  General Partner (based on each 
       1% General Partner
       Interest) /3/:                         2,961.58      6,477.79      2,648.16      2,283.24      3,086.94
 
</TABLE>
------------------------
Assets have been disposed of during 1995 and 1994 which materially affects the
comparability reflected in the selected financial data.

The above selected financial data should be read in conjunction with the
financial statements and the related notes appearing elsewhere in this annual
report.

/1/  Net income from continuing operations per cash general and limited partner
     interest is based on the aggregate number of such interests outstanding
     (22,869 units) during each year.

/2/  Cash distributions per limited partner and cash general partner interest
     are based on the aggregate number of such interests outstanding (22,869
     units) during each year.

/3/  The calculations are based on 1% of the total subordinated general partner
     interests. See Item 12(b), General Partner Interests.

                                      -6-
<PAGE>
 
ITEM 7.   MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
          ---------------------------------------------------------------
          RESULTS OF OPERATIONS.
          ---------------------

     (1) and (2)  Liquidity and Capital Resources.
                  -------------------------------

          The Partnership's quick ratios were 1.7:1 and 1.6:1 including
unrestricted cash balances of $700,939 and $544,356 at December 31, 1996 and
December 31, 1995, respectively.  The increase in the ratio is primarily due to
the increased cash balance.  The Partnership's cash  balance is its immediate
source of liquidity.

          On a long-term basis, the Partnership's liquidity is sustained
primarily from cash flow from operations, which during 1996 was approximately
$1,541,000.

          The Partnership sold Aptos Pines to a non-profit mutual benefit
corporation formed by the Aptos Pines Homeowners' Association on July 11, 1995.
See further detailed discussion of the transaction in Item 8, Note 3 to the
Financial Statements, which is incorporated herein by reference.

          As a consequence of the sale in 1994 of Margate, three reserve
accounts were established as follows:

          1)   The MHC Reserve in the amount of $181,000 was established as a
requirement of the Amended Acquisition Agreement between MHC and the
Partnership. The funds were released in full in 1995 and distributed to the Cash
General and Limited Partners.

          2)   The General Reserve is maintained in a separate interest bearing
trust account, pursuant to the terms of a trust agreement between the
Partnership, as the beneficiary, and Mr. Gelfand, as trustee, with an all cash
fund in the amount of $557,192. Pursuant to the terms of a contribution
agreement entered into among all of the partnerships and/or liquidating trusts
whose properties were acquired in the MHC transaction described above, funds in
the General Reserve may be used to discharge or satisfy the Partnership's pro
rata portion of any contingent liabilities of any of the liquidating trusts or
partnerships, and to discharge or satisfy any liabilities of Mr. Gelfand and his
affiliates. Such liabilities may include any legal expenses incurred by the
liquidating trusts, the partnerships, Mr. Gelfand and his affiliates personally,
in the defense or resolution of any claim or action arising out of the MHC
transaction, including claims arising out of indemnification obligations. In
August 1997, assuming no claims are threatened or pending, all funds remaining
in the General Reserve will be released to the Partnership.

          3)   The amount of the Independent Committee Reserve for the
Partnership was initially $286,731. The funds held in the Independent Committee
Reserve are invested in an interest bearing account (but not in derivative
securities) pursuant to the terms of the Independent Committee Trust Agreement,
between the Partnership as beneficiary, and Citicorp Trust N.A. as trustee for
the benefit of the Partnership's Independent Committee. Pursuant to the terms of
a contribution agreement among all of the partnerships/liquidating trusts, each
partnership/liquidating trust, including the Partnership, will contribute a pro
rata portion of any claim for indemnification made by the Independent Committee
regardless of which specific partnership or partnerships, if less than all, a
claim relates to. In August 1996, $143,365 of the reserve was 

                                      -7-
<PAGE>
 
released to the Partnership from the Independent Committee Reserve and assuming
no claims against the Independent Committee Reserve have been made or
threatened, the remaining $143,365, will be released in August 1997. The
Independent Committee in its sole discretion may extend the term of the
Independent Committee Reserve Trust for an additional year.

          In the future, liquidity may improve to the extent that funds are
released from the General Reserve and/or the Independent Committee Reserve.
However, the Partnership sold Woodbridge Meadows on February 19, 1997 and
expects to wind up its operations in 1997 and dissolve.

          Other than as described above, there are no known material trends,
favorable or unfavorable, in the Partnership's liquidity and capital resources.
The Partnership does not contemplate any material changes in the mix of its
capital resources, other than as described above.

     (3)  Results of Operations.
          ---------------------

          Since Aptos Pines was sold July 11, 1995 and Margate was sold in
August, 1994, a comparison of operations including Aptos Pines and Margate would
not be meaningful.  However, a comparison can be made excluding these
operations.

          Rental income increased 2.5% in 1996 over 1995 due to increased
occupancy.  Rental income increased 0.3% in 1995 over 1994 due to increased
rents being mostly offset by decreased occupancy at Woodbridge.  Competition
mostly arises from Irvine Apartment Communities whose numerous properties
dominate the local luxury apartment market.  Average occupancy at Woodbridge for
the last three years is as follows:

                               Average Occupancy
                               -----------------
<TABLE>
<CAPTION>

                                      1996    1995    1994
                                      ----    ----    ----
          <S>                         <C>     <C>     <C>
          Woodbridge Meadows           96%     94%     96%

</TABLE>

          Other income increased in 1996 over 1995 due to higher Woodbridge
Meadows occupancy and increased fee income reimbursing partnership costs to
record transfers of limited partner interests.  Interest income increased in
1995 over 1994 due to increased cash balances as a result of higher investment
balances and higher interest rates received.

          Expenses during 1996 decreased 15.6% over 1995 mostly due to the
Partnership ceasing Woodbridge Meadows depreciation when it listed the property
for sale in 1996 at a value greatly exceeding its book value.  Interest expense
decreased due to increasing principal amortization of the secured note payable.
Partly offsetting these decreases were increases in utilities, maintenance and
other expenses largely due to increased occupancy.  Additionally, salaries
increased with more leasing personnel and professional fees and services
increased largely due to costs of responding to offers by Moraga Capital, LLC
for the Partnership's limited partner interests.

                                      -8-
<PAGE>
 
          Expenses during 1995 increased 1.0% over 1994. Professional fees and
services increased due to increased legal costs associated with Moraga Capital,
LLC's offer to purchase Limited Partner units. Insurance premiums at Woodbridge
increased 54% over 1994 largely as a result of the January 1994 Northridge
earthquake centered approximately 70 miles from Woodbridge. Other expenses
increased due to the design and production of a new brochure in 1995 to promote
the property's recent upgrades. Offsetting these increases was a decrease in
depreciation due to the declining balance method of depreciation. Also, interest
expense decreased due to increasing principal amortization of the secured note
payable and interest on a short-term loan in 1994 not repeated in 1995.

          Other than as described above, there are no known trends or
uncertainties which have had or can be reasonably expected to have a material
effect on continuing operations.

ITEM 8.   FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA.
          -------------------------------------------

          See Index to Financial Statements set forth in Item 14 of this Annual
Report on Form 10-K.  The material contained in such Financial Statements, Notes
and Supplementary Schedules is incorporated herein by reference.

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

          None.


                                   PART III.

ITEM 10.  DIRECTORS AND EXECUTIVE OFFICERS OF THE PARTNERSHIP.
          ---------------------------------------------------

     (a)  General Partners
          ----------------

          The Partnership is a limited partnership and has no executive officers
or directors.  De Anza Corporation has served as the Operating General Partner
of the Partnership since May 31, 1990 and its directors and policy making
executive officers are described below together with the names and ages of the
other General Partners, each of whom has served in that capacity since the
creation of the Partnership.

                                      -9-
<PAGE>
 
<TABLE>
<CAPTION>
 
Name of General Partners                                         Age
------------------------                                         ---
<S>                                                              <C>
De Anza Corporation
(Operating General Partner)                                      N/A
Herbert M. Gelfand                                               65
Benjamin L. Susman                                               73
Harold H. Benjamin                                               72
Jack Bevash                                                      72
 
Name of Directors/Key Executive Officers
of De Anza Corporation, Operating General Partner
-------------------------------------------------
Michael D. Gelfand                                               42
David G. Licht                                                   72
Sheila M. Schrank                                                41
</TABLE>

          Pursuant to the Partnership's Third Amended and Restated Agreement of
Limited Partnership as amended, (the "Partnership Agreement"), the General
Partners will retain their respective positions until their death, insanity,
bankruptcy, disability, removal, or withdrawal.

          De Anza Corporation, the Operating General Partner of the Partnership,
is wholly owned by Herbert M. Gelfand.  De Anza Corporation was formed as a
California corporation in 1984 and since October 1985, has been available to
serve as a general partner of real estate partnerships previously sponsored by
De Anza Group, Inc. or Mr. Gelfand.  De Anza Corporation currently serves as the
operating general partner of one other real estate partnership and is the
liquidating agent for three other partnerships which are dissolving.

          Herbert M. Gelfand served as the Operating General Partner of the
Partnership from its inception to May 31, 1990 and currently serves as a general
partner of five affiliated partnerships.  Mr. Gelfand is currently the Operating
General Partner of four of the five affiliated partnerships, the first of which
was formed in 1969.  Mr. Gelfand was also the founder, and together with his
wife, Beverly J. Gelfand, were the principal shareholders of De Anza Group, Inc.
which was sold August 18, 1994.  Mr. Gelfand served as its Chairman of the Board
of Directors until its sale.  From 1986 to 1990, Mr. Gelfand was also its Chief
Executive Officer.  In addition, Mr. Gelfand is the Chairman of the Board of
Directors of De Anza Corporation.  He is a member of the Bar of the State of
California and was engaged in the private practice of law from 1956 through 1977
and from 1970 until 1975, Mr. Gelfand was a partner in the predecessor to the
firm of Benjamin and Susman, a Law Corporation (and thereafter was counsel to
that firm until 1977), which predecessor law firm performed legal services for
all but one of the affiliated partnerships.  Mr. Gelfand is married to Beverly
J. Gelfand, who served as a director of De Anza Group, Inc. until its sale, and
is the father of Michael D. Gelfand, Director, President, Chief Financial
Officer and Treasurer of De Anza Corporation.

          Benjamin L. Susman is an inactive member of the Bar of the State of
California and was engaged in the private practice of law from 1951 until his
retirement in 1980.  He was, until his retirement, a 

                                      -10-
<PAGE>
 
partner in the law firm of Benjamin and Susman, a Law Corporation, which
performed legal services for the Partnership in prior years. He has served as a
general partner in ten public and private real estate limited partnerships. Mr.
Susman is currently retired. Mr. Susman is not actively engaged in the
management of the Partnership.

          Harold H. Benjamin is a member of the Bar of the State of California
and was engaged in the private practice of law from 1950 until his retirement in
1982.  He was a member of the Board of Directors and an Officer of Deauville
Real Estate Corporation and Conventional Mortgage Corporation, and a partner in
the law firm of Benjamin and Susman, a Law Corporation, which performed legal
services for the Partnership.  He serves as a general partner in 13 private and
public real estate limited partnerships.  He is currently Executive Director of
Wellness Community, Santa Monica, California.  Mr. Benjamin is not actively
engaged in the management of the Partnership.

          Jack Bevash has, since 1964, been the principal executive of Jack
Bevash Associates, a planning and architectural firm which has directed the
master planning for projects located in California, Hawaii and other regions.
From 1959 to 1964, he was the principal associate in charge of planning for
William L. Pereira & Associates, another planning and architectural firm, and in
this capacity supervised the development of master plans for the Irvine Ranch in
Orange County, California.  Mr. Bevash is not actively engaged in the management
of the Partnership.

          Michael D. Gelfand is a director, President, Chief Financial Officer
and Treasurer of De Anza Corporation, and is President of and sole shareholder
of Terra Vista Management, Inc. a real estate management company that currently
manages Woodbridge and properties owned by other affiliated partnerships.  Mr.
Gelfand joined De Anza Group, Inc. in 1978 and is the son of Herbert M. Gelfand
and Beverly J. Gelfand.  He received a B.S. degree from Claremont Men's College
in 1977.  Mr. Gelfand is a previous member of the Board of Directors of the
National Campground Owner's Association, and is a licensed NASD General
Securities Principal.

          David G. Licht has been an attorney practicing in California since
1950, and is the senior member of Licht & Licht, a Professional Corporation,
specializing in business law.  He became a director of De Anza Group, Inc. in
April 1980 and served until its sale.  He has served as a Director of De Anza
Corporation since its inception.  He also served as the Secretary of De Anza
Group, Inc. from April 1980 until February 1981, and is a general partner in an
affiliated partnership.

          Sheila M. Schrank became Vice President - Controller of De Anza
Corporation in October 1990.  Prior to that, Ms. Schrank served as Assistant
Vice President from 1983-1990, after having served as Assistant Controller since
1982.  From 1976 to June 1982, she served in various accounting and data
processing functions at De Anza Accounting Corporation, a former affiliate of
the Operating General Partner.

                                      -11-
<PAGE>
 
     (b)  Independent Committee.
          ---------------------

          The Partnership created an independent committee (the "Independent
Committee") to review and evaluate certain "Interested Partner" and
"Fundamental" transactions. These transactions are defined in the Partnership
Agreement, which is incorporated herein by reference, and are to be reviewed
prior to the expenditure of significant sums in connection with the pursuit of
any such transactions. The Independent Committee was created pursuant to an
amendment to the Partnership Agreement which was adopted at the May 31, 1990
Special Meeting of the Limited Partners.

          The members of the Independent Committee are Frederick M. Nicholas,
Arthur W. Schmutz and Ira Yellin.  The appointment of these individuals to the
Independent Committee was approved and ratified by vote of the Limited Partners
at the May 31, 1990 Special Meeting of the Limited Partners.  None of the
members of the Independent Committee has had any prior dealings or affiliation
with the Partnership or the General Partners.

          Frederick M. Nicholas, age 75 is President and the principal
shareholder of The Hapsmith Company since it was formed. The Hapsmith Company
specialized in commercial real estate development. Mr. Nicholas attended the
University of Southern California, where he received an AB degree in 1947 and a
JD degree in 1952. Mr. Nicholas was the Chairman of the Board of Trustees for
the Museum of Contemporary Art, Los Angeles, California.

          Arthur W. Schmutz, age 74 has been a partner at Gibson, Dunn &
Crutcher, a law firm, from 1960 to 1986 and an advisory partner at the same law
firm from 1987 to the present.  Mr. Schmutz has been practicing law in
California since 1953 and his areas of specialty include securities, real
estate, corporate and general commercial law.  He received his AB degree from
Johns Hopkins University in 1949 and an LLB degree from Harvard Law School in
1952.

          Ira Yellin, age 56 served as Executive Vice President of The Hapsmith
Company from 1975 to 1985. From 1985 to 1997, he was the President and principal
shareholder of The Yellin Company, which is engaged in general real estate
investment, development and management. Currently, Mr. Yellin is Senior Vice
President of Catellus Development Corp. Mr. Yellin received an AB degree from
Princeton University in 1962. He also received an LLB degree from Harvard Law
School in 1965 and an LLM degree from the University of California, Berkeley, in
1966.

ITEM 11.  EXECUTIVE COMPENSATION.
          ----------------------

          The Partnership does not have directors, a chief executive officer or
any other executive officers.  The following table sets forth, for the years
ended December 31, 1996, 1995 and 1994, information regarding compensation
(including distributions) exceeding $100,000 paid to the General Partners of the
Partnership and compensation paid by the Partnership to the Operating General
Partner's President.  None of the four most highly compensated officers of the
Operating General Partner received reimbursement from the Partnership exceeding
$100,000 each during the years ended December 31, 1996, 1995 and 1994.

                                      -12-
<PAGE>

<TABLE>
<CAPTION>
  
                                                              Summary Compensation Table
                                                              --------------------------
Name and                                                                                   Other Annual            All Other
Principal Position                                  Year          Salary       Bonus       Compensation        Compensation/1/
----------------------------------------            ----          ------       -----       -------------       ---------------
<S>                                                 <C>           <C>          <C>         <C>                 <C>
                                                                                                        
Herbert M. Gelfand,                                                                                     
  General Partner                                   1996          $-0-         $-0-            $-0-               $120,873
                                                    1995          $-0-         $-0-            $-0-               $250,828
                                                    1994          $-0-         $-0-            $-0-               $100,600
                                                                                                        
Michael D. Gelfand,                                                                                     
  President of De Anza Corporation,                                                                                  
  Operating General Partner                         1996          $-0-         $-0-            $-0-               $  4,338/2/
                                                    1995          $-0-         $-0-            $-0-               $  9,489
                                                    1994          $-0-         $-0-            $-0-               $  3,879
</TABLE> 
           Information contained in Item 13 of this Annual Report on Form 10-K
is incorporated herein by reference.


COMPENSATION OF DIRECTORS.

          The Partnership does not have directors.  De Anza Corporation, the
Operating General Partner, has directors, none of whom received compensation for
the year ended December 31, 1996, from the Partnership.

COMPENSATION COMMITTEE INTERLOCKS AND INSIDER PARTICIPATION.

          There is no compensation committee for the Partnership or the
Operating General Partner.  The President of the Operating General Partner
participates in deliberations regarding executive officer compensation.
Payments of compensation by the Partnership are governed by the Partnership
Agreement and described in the Prospectus under the heading "Compensation and
Fees of General Partners", page 10, which is incorporated herein by reference.

EMPLOYMENT CONTRACTS, TERMINATION OF EMPLOYMENT AND CHANGE IN CONTROL
AGREEMENTS.

          In the event a General Partner (other than the Operating General
Partner) withdraws as a General Partner of the Partnership, such individual may
either (i) upon payment of $1,000 to the Partnership, 

-------------------------
/1/  The compensation specified in this column represents distributions
     attributable to incentive interests held by the General Partners pursuant
     to the Partnership Agreement described under the heading "Compensation and
     Fees of General Partners - Operational Stage, General Partners Incentive
     Interest", page 11 of the Prospectus, which is incorporated herein by
     reference.

/2/  Michael D. Gelfand was assigned a portion of the economic benefits of
     Herbert M. Gelfand's General Partner Interest.

                                      -13-
<PAGE>
 
continue as a Limited Partner (but without the right to vote as a Limited
Partner), and thereafter receive all profits, losses and cash distributions to
which he would have been entitled as a General Partner, or (ii) sell his
interest to the Partnership or the remaining General Partners at a price and on
such terms agreed upon by the withdrawing General Partner and De Anza
Corporation, the Partnership's Operating General Partner. In the event the
withdrawing General Partner elects to sell his interest in the Partnership, he
must first offer to sell such interest to the Partnership. If such offer is not
accepted by a majority in interest of the Partnership's Limited Partners within
30 days after the Partnership's receipt of the notice of withdrawal, then the
withdrawing General Partner shall offer his interest for sale to the remaining
General Partners, who shall have the right to accept such offer for a period of
30 days.

          In the event a General Partner is removed as a General Partner by vote
of a majority in interest of the Limited Partners, such General Partner shall
automatically become a Limited Partner and if the vote of a majority in interest
of the Limited Partners so requires, sell his interest to the Limited Partners
who shall purchase such interest on behalf of the Partnership.  If a removed
General Partner is required by the Limited Partners to sell his interest in the
Partnership, the amount to be paid for such interest shall be computed as of the
date of the consummation of the purchase and in accordance with Section 15 of
the Partnership's Partnership Agreement, which is incorporated herein by
reference.

ITEM 12.  SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT.
          --------------------------------------------------------------

     (a)  Security Ownership of Certain Beneficial Owners.
          -----------------------------------------------

<TABLE>
<CAPTION>
                                Name & Address of            Amount & Nature of
Title of Class                  Beneficial Owner             Beneficial Ownership     Percent of Class
--------------                  -----------------            --------------------     ----------------
 
<S>                             <C>                          <C>                      <C>
Limited Partnership             Moraga Capital, LLC          3,281 UNITS/1/           14.4%(1)
  Interests:                    MacKenzie Patterson          DIRECT
                                1640 School Street, #103
                                Moraga, CA 94556
</TABLE>
-------------------------
/1/  Moraga Capital, LLC, an affiliate of MacKenzie Partners, completed a tender
     offer for Limited Partner Units on January 31, 1996, whereupon Moraga and
     its members, including MacKenzie, were the beneficial owners of 3,281 units
     as reported in Amendment No. 3 to Schedule 14D-1 amending Schedule 13D,
     dated February 1, 1996.

                                      -14-
<PAGE>
 
     (b)  Security Ownership of Management.
          --------------------------------
<TABLE>
<CAPTION>
                                                                    Amount & Nature of
Title of Class                  Name of Beneficial Owner            Beneficial Ownership     Percent of Class
--------------                  ------------------------            --------------------     ----------------
 
<S>                             <C>                                 <C>                      <C> 
General Partner
  Interests:                    Herbert M. Gelfand                  37.98870%                37.98870%
                                                                    TTEE
  
                                Benjamin L. Susman                  9.13097%                 9.13097%
                                                                    TTEE
 
                                Harold H. Benjamin                  8.60487%                 8.60487%
                                                                    TTEE
 
                                Jack Bevash                         4.29693%                 4.29693%
                                                                    TTEE
 
                                De Anza Corporation                 1.07423%                 1.07423%
                                                                    DIRECT                   --------
                                                                    --------
                                All GeneralPartners and
                                  directors/key executive   
                                  officers of De Anza
                                  Corporation as a group (9):       61.0957%/2/              61.0957%/2/
                                                                    ===========              ===========
  Limited Partnership
  Interests:/3/ /4/             Herbert M. Gelfand                  147.25133 UNITS           *
                                                                    TTEE
 
                                Herbert M. Gelfand                  1.25042 UNITS             *
                                                                    BY SPOUSE
  
                                Benjamin L. Susman                  20.22292 UNITS            *
                                                                    TTEE
 
                                Harold H. Benjamin                  20.21046 UNITS
                                                                    TTEE
 
                                Jack Bevash                         20.10844 UNITS            *
                                                                    TTEE
                                                                    ----
                                All General Partners and
                                  directors/key executive                           
                                  officers of De Anza              
                                  Corporation as a group (9):       209.04357 UNITS           *
                                                                    =========
</TABLE>  
* Less than 1%

     (c)  Changes in Control.
          ------------------

-------------------------
/2/  Beneficial ownership excludes the assignment by a Beneficial Owner of any
     economic interests to others; however, it does include the economic
     interest if the Beneficial Owner is the assignee.

/3/  Includes Cash General Partner Interests where applicable.

/4/  Since Aubrey Meyerson ceased being a General Partner upon his death in
     October 1995, the General Partners now hold less than 1% of the Limited
     Partnership interests.

                                      -15-
<PAGE>
 
          None.

ITEM 13.  CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS.
          ----------------------------------------------

          For the year ended December 31, 1996, Terra Vista Management, Inc., an
affiliate of the Operating General Partner, was paid management fees of
$192,085.  In addition, one or more affiliates of the Operating General Partner
or Terra Vista Management, Inc., for the year ended December 31, 1996, were
reimbursed $155,840 for the costs of goods and services provided that were
necessary for the operation of the Partnership and its property.  A portion of
the foregoing fees were for compensation to executives as set forth in Item 11
above.  See Item 8, Note 6 to the Financial Statements for discussion of Terra
Vista Management, Inc.'s affiliation with the Partnership and actual transaction
amounts which is incorporated herein by reference.


                                    PART IV.
 
 
ITEM 14.  EXHIBITS, FINANCIAL STATEMENT SCHEDULES AND REPORTS ON FORM 8-K.
          ---------------------------------------------------------------
 
     (a)  1.   Index to Financial Statements for the years ended December 31,
               1996, 1995, and 1994 that are filed as part of this report:
<TABLE>
<CAPTION>
                                                                          PAGE
                                                                          ----
<S>                                                                       <C>

Independent Auditor's Report...........................................    22

Balance Sheets, December 31, 1996 and 1995.............................    24

Statements of Income for the years ended
     December 31, 1996, 1995 and 1994..................................    26

Statements of Changes in Partners' Capital (Deficit)
     for the period January 1, 1994 to December 31, 1996...............    27

Statements of Cash Flows for the years ended
     December 31, 1996, 1995 and 1994..................................    28

Notes to Financial Statements..........................................    30

Schedules of Projects' Operations for the years ended
     December 31, 1996, 1995 and 1994..................................    41

Schedule of Distributable Income, Partners' Distributions
     and Reserves for the years ended
     December 31, 1996, 1995 and 1994..................................    44
</TABLE>

                                      -16-
<PAGE>
 
          2.   All Schedules have been omitted since they are not required, not
applicable or the information is included in the Financial Statements or notes
thereto.

          3.   The following index sets forth the exhibits required to be filed
by Item 601 of Regulation S-K:

<TABLE> 
<CAPTION> 

EXHIBIT NO.                                                               PAGE
-----------                                                               ----
<S>           <C>                                                         <C> 
3.1           Third Amended and Restated Agreement of Limited 
              Partnership effective as of  May 31, 1990.  
              (See Exhibit 3.1 in the Partnership's Annual Report 
              on Form 10-K for the year ended December 31, 1990, 
              incorporated herein by reference.)

3.2           First Amended to Third Amended and Restated Agreement 
              of Limited Partnership effective as of  April 9, 1992.  
              (See Exhibit 3.2 in the Partnership's Annual Report on 
              Form 10-K for the year ended December 31, 1992, 
              incorporated herein by reference.)

10.1          Secured Promissory Note in the amount of $13,510,000 
              and Mortgage and Security Agreement dated July 26, 1990.  
              (See Exhibit 4.2 in the Partnership's Annual Report on 
              Form 10-K for the year ended December 31, 1990, 
              incorporated herein by reference.)

10.2          Promissory Notes in the amount of $6,000,000 Security 
              Agreement, Collateral Assignment of Leases and Rents, 
              Deed of Trust and Assignment of Rents dated June 28, 
              1979.  (See Exhibit 10.6 in the Partnership's Annual 
              Report on Form 10-K for the year ended December 31, 
              1991, incorporated herein by reference.)

10.3          Amended Acquisition Agreement and Joint Escrow 
              Instructions dated May 9, 1994 by and between De Anza 
              Properties-X and MHC Operating Limited Partnership  
              respecting Colonies of Margate, as executed.  (See
              Exhibit 10.8 in the Partnership's Annual Report on 
              Form 10-K for the year ended December 31, 1994, 
              incorporated herein by reference.)

10.4          General Reserve Contribution Agreement dated August 1, 
              1994 between the Partnership, affiliated partnerships, 
              the Herbert M. and Beverly J. Gelfand Family Trust, 
              and Herbert M. Gelfand as trustee.  (See Exhibit 10.10 
              in the Partnership's Annual Report on Form 10-K for the
              year ended December 31, 1994, incorporated herein by 
              reference.)
</TABLE> 

                                      -17-
<PAGE>
 
<TABLE> 
<CAPTION> 

EXHIBIT NO.                                                               PAGE
-----------                                                               ----

<S>           <C>                                                         <C> 
10.5          Independent Committee Reserve Contribution Agreement 
              dated August 1, 1994 between the Partnership, 
              affiliated partnerships, and Citicorp Trust N.A. as 
              trustee.  (See Exhibit 10.11 in the Partnership's 
              Annual Report on Form 10-K for the year ended 
              December 31, 1994, incorporated herein by reference.)

10.6          Independent Committee Trust Agreement dated August 1, 
              1994 by and between the Partnership and Citicorp Trust 
              N.A. as Trustee.  (See Exhibit 10.12 in the Partnership's 
              Annual Report on Form 10-K for the year ended December 31, 
              1994, incorporated herein by reference.)

10.7          General Reserve Trust Agreement dated August 1, 1994 by 
              and between the Partnership, the Herbert M. and Beverly J. 
              Gelfand Family Trust, and Herbert M. Gelfand as Trustee.  
              (See Exhibit 10.13 in the Partnership's Annual Report on 
              Form 10-K for the year ended December 31, 1994, 
              incorporated herein by reference.)

10.8          Woodbridge/Terra Vista Management Agreement dated 
              August 18, 1994.  (See Exhibit 10.1 in the Partnership's 
              Quarterly Report on Form 10-Q for the quarter ended 
              September 30, 1995, incorporated herein by reference.)

10.9          Contract to sell Woodbridge dated October 7, 1996. (See 
              Exhibit 10.1 on Form 10-Q for the quarter ended 
              September 30, 1996 incorporated herein by reference.)
</TABLE> 

              (b)   Reports on Form 8-K.

                    None.

              (c)   The information set forth in Item 14(a)(3) of this Annual
Report on Form 10-K is incorporated herein by reference.

              (d)   All information required by Regulation S-X will be furnished
by the Partnership to its partners in its annual report. Therefore, this Item is
not applicable.

                                      -18-
<PAGE>
 
                                  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.


DE ANZA PROPERTIES - X  (a California limited partnership)


By DE ANZA CORPORATION  (a California corporation)
Operating General Partner


By     /s/Michael D. Gelfand
       ---------------------
       Michael D. Gelfand
       President and Chief Financial Officer

Date:  March 26, 1997

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



By     /s/Herbert M. Gelfand
       ---------------------
       Herbert M. Gelfand, Chairman of the Board Of Directors of De Anza
       Corporation, the Operating General Partner

Date:  March 26, 1997


By     /s/Michael D. Gelfand
       ---------------------
       Michael D. Gelfand, Director of De Anza Corporation, the Operating
       General Partner

Date:  March 26, 1997


By     /s/David Licht
       --------------
       David Licht, Director of De Anza Corporation, the Operating General
       Partner

Date:  March 26, 1997

                                      -19-
<PAGE>
 
                                                     DE ANZA PROPERTIES - X
                                                     (A LIMITED PARTNERSHIP)

                                                    AUDITED FINANCIAL STATEMENTS
                                                     AND SUPPLEMENTAL SCHEDULES

                                                      December 31, 1996 and 1995
<PAGE>
 
                            De Anza Properties - X
                            (A Limited Partnership)

                          December 31, 1996 and 1995



                                   CONTENTS

<TABLE> 
<S>                                                                          <C>
Report of Independent Auditors............................................     1


Audited Financial Statements
 
Balance Sheets............................................................     3
Statements of Income......................................................     5
Statement of Changes in Partners' Capital (Deficit).......................     6
Statements of Cash Flows..................................................     7
Notes to Financial Statements.............................................     9

Other Financial Information

Schedules of Projects' Operations.........................................    20
Schedules of Distributable Income, Partners' Distributions and Reserves...    23
</TABLE> 
<PAGE>
 
                         Report of Independent Auditors



To the Partners
De Anza Properties - X
Beverly Hills, California


We have audited the accompanying balance sheets of De Anza Properties - X, a
Limited Partnership (the Partnership), as of December 31, 1996 and 1995, and the
related statements of income, changes in partners' capital (deficit) and cash
flows for the years ended December 31, 1996, 1995 and 1994. 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.

As discussed in Note 3 to the financial statements, the Partnership sold two of
its properties on July 11, 1995 and on August 18, 1994. The assets and
operations of the properties sold represented a significant portion of the
Partnership's total assets and results of operations. On March 4, 1997, the
Partnership sold its remaining operating property.

As discussed in Note 1 to the financial statements, in 1996 the partnership
changed its method of accounting for long-lived assets and long-lived assets to
be disposed of.

                                                                               1
<PAGE>
 
In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of the Partnership as of December
31, 1996 and 1995, and the results of its operations and its cash flows for the
years ended December 31, 1996, 1995 and 1994, in conformity with generally
accepted accounting principles.

Our audits were conducted for the purpose of forming an opinion on the basic
financial statements taken as a whole. The accompanying supplementary Schedules
I and II are presented for the purposes of additional analysis and are not a
required part of the basic financial statements. Such information has been
subjected to the auditing procedures applied in the audits of the basic
financial statements and, in our opinion, is fairly stated in all material
respects in relation to the basic financial statements taken as a whole.


ERNST & YOUNG, LLP
January 28, 1997, except for Note 8
as to which the date is March 4, 1997,
Los Angeles, California

                                                                               2
<PAGE>
 
                            De Anza Properties - X
                            (A Limited Partnership)

                                 Balance Sheets
<TABLE>
<CAPTION>
                                                          December 31,
                                                       1996           1995
                                                     --------      ---------
<S>                                                  <C>           <C> 
                 ASSETS
 
CASH AND CASH EQUIVALENTS, including
 restricted cash of $700,558 and $843,923 at         
 December 31, 1996 and 1995, respectively 
 (Notes 1 and 3)                                     $ 1,401,497   $ 1,388,279 

ACCOUNTS RECEIVABLE                                       11,122        10,812
 
PREPAID EXPENSES                                          70,995        70,222
                                                     -----------   -----------
                                                       1,483,614     1,469,313
                                                     -----------   ----------- 
PROPERTY AND EQUIPMENT (Notes 1, 3, 5, 8 and 9)
   Land                                                2,989,265     2,989,265 
   Land improvements                                   4,793,220     4,704,170
   Buildings and improvements                         11,448,171    11,448,171
   Furniture and equipment                               647,412       623,498
                                                     -----------   -----------
                                                      19,878,068    19,765,104 

   Less accumulated depreciation                      10,208,135     9,921,679
                                                     -----------   -----------
                                                       9,669,933     9,843,425
                                                     -----------   ----------- 
OTHER ASSETS
   Loan costs, less accumulated amortization of 
    $56,564 and $53,484 in 1996 and 1995,        
    respectively (Notes 1 and 5)                          51,251        54,331
   Prepaid sale costs (Notes 1 and 3)                     69,994             -
   Other                                                  20,000        20,656
                                                     -----------   -----------
                                                         141,245        74,987  
                                                     -----------   -----------
                                                     $11,294,792   $11,387,725
                                                     ===========   ===========
</TABLE> 

See accompanying report of independent auditors and notes to financial 
statements.

                                                                               3
<PAGE>
 
                            De Anza Properties - X
                            (A Limited Partnership)

                          Balance Sheets (Continued)

<TABLE>
<CAPTION>
                                                          December 31,
                                                       1996           1995
                                                     --------      ---------
<S>                                                  <C>           <C> 

LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
 
ACCOUNTS PAYABLE AND ACCRUED EXPENSES,
  including $19,020 and $11,305 due to
  related parties at December 31, 1996 and 
  1995, respectively (Note 6)                        $   158,809    $   127,389
 
DEPOSITS AND ADVANCE RENTALS                             139,900        122,937
 
UNRECOGNIZED GAIN (Note 3)                               700,558        843,923
 
SECURED NOTE PAYABLE (Note 5)                          4,658,315      4,752,430
                                                     -----------    -----------
                                                       5,657,582      5,846,679
                                                     -----------    ----------- 
PARTNERS' CAPITAL (DEFICIT)
  General partners                                    (3,453,230)    (3,476,003)
  Cash general partners, 228.5 units
    issued and outstanding                                78,420         77,686
  Limited partners, 22,640.5 units
    issued and outstanding                             9,012,020      8,939,363
                                                     -----------    -----------
                                                       5,637,210      5,541,046
                                                     -----------    -----------
                                                     $11,294,792    $11,387,725
                                                     ===========    ===========
</TABLE>

See accompanying report of independent auditors and notes to financial 
statements.

                                                                               4
<PAGE>
                            De Anza Properties - X
                            (A Limited Partnership)

                              Statements of Income

<TABLE>
<CAPTION>
                                                Year ended December 31,
                                             1996          1995        1994
                                         -----------   -----------  -----------
<S>                                      <C>           <C>          <C>
INCOME
 Gain on sale of property and            
  equipment (Note 3)                     $  143,365    $2,258,041   $16,322,297
 Unrecognized gain (Note 3)                       -             -    (1,024,923)
                                         ----------    ----------   -----------
 Net gain recognized                        143,365     2,258,041    15,297,374
 
 Rent (Note 4)                            3,713,584     3,935,175     6,346,217
 Utilities                                        -       143,232       359,265
 Other                                      136,390       120,967       150,677
 Interest and dividends                      67,235        74,678        37,872
                                         ----------    ----------   -----------
                                          4,060,574     6,532,093    22,191,405
                                         ----------    ----------   -----------
EXPENSES
 Interest                                   471,805       481,556     1,360,876
 Maintenance, repairs and supplies          363,384       377,233       670,009
 Other                                      302,870       293,714       354,340
 Salaries, including $20,819, $22,186 
  and $44,958 paid to related parties 
  in 1996, 1995 and 1994, respectively 
  (Note 6)                                  297,085       323,316       555,829

 Depreciation and amortization              289,536       659,185     1,210,415
 Professional fees and services, 
  including $101,646, $127,517 and 
  $232,581 paid to related parties
  in 1996, 1995 and 1994, respectively 
  (Note 6)                                  223,469       238,546       367,705

 Real estate taxes                          208,208       237,816       473,999
 Utilities                                  202,441       284,007       540,032
 Management fees, including $192,085, 
  $187,208 and $313,036 paid to related 
  parties in 1996, 1995 and 1994, 
  respectively (Note 6)                     192,085       211,442       326,742
 Insurance                                  103,924       102,215       120,570
 Payroll taxes and employee benefits         59,021        62,621       130,116
                                         ----------    ----------   -----------
                                          2,713,828     3,271,651     6,110,633
                                         ----------    ----------   -----------
 
NET INCOME                               $1,346,746    $3,260,442   $16,080,772
                                         ==========    ==========   ===========
NET INCOME
 GENERAL PARTNERS                        $  318,931    $  382,274   $   516,098
                                         ==========    ==========   ===========
 CASH GENERAL AND LIMITED PARTNERS       $1,027,815    $2,878,168   $15,564,674
                                         ==========    ==========   ===========
 
INCOME PER 1% GENERAL PARTNER INTEREST   
 (Note 7)                                $ 3,189.31    $ 3,822.74   $  5,160.98
                                         ==========    ==========   ===========
INCOME PER CASH GENERAL AND LIMITED
   PARTNERSHIP UNIT (Note 7)             $    44.94    $   125.85   $    680.60
                                         ==========    ==========   ===========

</TABLE> 
See accompanying report of independent auditors and notes to financial 
statements.
                                                                               5
<PAGE>
 
                            De Anza Properties - X
                            (A Limited Partnership)

              Statement of Changes in Partners' Capital (Deficit)

                  Years Ended December 31, 1996, 1995 and 1994

<TABLE>
<CAPTION>
                                                                      Cash
                                                       General       General      Limited
                                                      Partners      Partners      Partners
                                        Total         (Note 2)      (Note 2)      (Note 2)
                                     ------------    -----------    --------    ----------- 
<S>                                  <C>             <C>            <C>         <C>
BALANCE - January 1, 1994            $   (23,991)    $(3,461,780)   $ 21,940    $ 3,415,849
 
DISTRIBUTIONS TO PARTNERS             (8,251,236)       (264,816)    (79,798)    (7,906,622)
 
NET INCOME - for the year ended
   December 31, 1994                  16,080,772         516,098     155,517     15,409,157
                                     -----------     -----------    --------    ----------- 
 
BALANCE - December 31, 1994            7,805,545      (3,210,498)     97,659     10,918,384
 
DISTRIBUTIONS TO PARTNERS             (5,524,941)       (647,779)    (48,731)    (4,828,431)
 
NET INCOME - for the year ended
   December 31, 1995                   3,260,442         382,274      28,758      2,849,410
                                     -----------     -----------    --------    ----------- 
 
BALANCE - December 31, 1995            5,541,046      (3,476,003)     77,686      8,939,363
 
DISTRIBUTIONS TO PARTNERS             (1,250,582)       (296,158)     (9,536)      (944,888)
 
NET INCOME - for the year ended
   December 31, 1996                   1,346,746         318,931      10,270      1,017,545
                                     -----------     -----------    --------    ----------- 
 
BALANCE - December 31, 1996          $ 5,637,210     $(3,453,230)   $ 78,420    $ 9,012,020
                                     ===========     ===========    ========    =========== 
</TABLE>

See accompanying report of independent auditors and notes to financial 
statements.

                                                                               6
<PAGE>
 
                            De Anza Properties - X
                            (A Limited Partnership)

                            Statements of Cash Flows

<TABLE>
<CAPTION>
                                                                                     Year Ended December 31,             
                                                                               1996           1995           1994
                                                                           -----------    -----------    -----------
<S>                                                                        <C>            <C>            <C>             
OPERATING ACTIVITIES                                                                                                     
 Gross rents received from real estate operations                          $ 3,726,152    $ 4,101,943    $  7,289,290    
 Cash paid to suppliers and employees, including $347,925, $344,199 
  and $596,597 paid to related parties in 1996, 1995 and 1994, 
  respectively (Note 6)                                                     (1,921,184)    (2,148,160)     (4,661,509)   
 Interest paid                                                                (471,805)      (481,556)     (1,360,876)   
 Interest and other income received                                            207,710        189,311         187,650    
                                                                           -----------    -----------    ------------
  Net cash provided by operating activities                                  1,540,873      1,661,538       1,454,555    
                                                                           -----------    -----------    ------------
                                                                                                                         
INVESTING ACTIVITIES                                                                                                     
 Additions to property and equipment                                          (112,964)      (348,519)       (286,938)   
 Sale of property and equipment                                                      -      4,325,000      23,704,420    
 Sales costs                                                                   (69,994)       (71,498)       (539,156)   
 Escrow deposits                                                                     -            100            (100)   
                                                                           -----------    -----------    ------------
  Net cash (used in) provided by investing activities                         (182,958)     3,905,083      22,878,226    
                                                                           -----------    -----------    ------------
                                                                                                               
FINANCING ACTIVITIES                                                                                                     
 Principal payments on secured notes payable                                   (94,115)       (85,194)    (13,459,150)   
 Proceeds from unsecured note payable                                                -              -         200,000    
 Principal payment of unsecured note payable                                         -              -        (200,000)   
 Prepayment penalty                                                                  -              -      (1,618,831)   
 Loan costs                                                                          -              -          (1,000)   
 Partner distributions                                                      (1,250,582)    (5,524,941)     (8,251,236)   
                                                                           -----------    -----------    ------------
  Net cash used in financing activities                                     (1,344,697)    (5,610,135)    (23,330,217)   
                                                                           -----------    -----------    ------------
                                                                                                              
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS                            13,218        (43,514)      1,002,564    
                                                                                                                         
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR                               1,388,279      1,431,793         429,229    
                                                                           -----------    -----------    ------------
                                                                                                                         
CASH AND CASH EQUIVALENTS AT END OF YEAR                                   $ 1,401,497    $ 1,388,279    $  1,431,793     
                                                                           ===========    ===========    ============
</TABLE>

See accompanying report of independent auditors and notes to financial 
statements.

                                                                               7
<PAGE>
 
                            De Anza Properties - X
                            (A Limited Partnership)

                      Statements of Cash Flows (Continued)

<TABLE>
<CAPTION>
                                                                                     Year Ended December 31,             
                                                                               1996           1995           1994
                                                                           -----------    -----------    ------------
<S>                                                                        <C>            <C>            <C>             
RECONCILIATION OF NET INCOME TO NET CASH PROVIDED BY OPERATING
 ACTIVITIES
 Net income                                                                $1,346,746     $ 3,260,442    $ 16,080,772
 Adjustments to reconcile net income to net cash provided by 
  operating activities:
   Gain on sale of property and equipment                                    (143,365)     (2,258,041)    (15,297,374)
   Depreciation and amortization                                              289,536         659,185       1,210,415
 Changes in operating assets and liabilities:
   (Increase) decrease in accounts receivable                                    (310)         66,243          (1,228)
   (Increase) decrease in prepaid expenses                                       (773)         (3,122)         20,452
   Increase in mobile homes held for resale                                         -               -         (75,119)
   Decrease in other assets                                                       656           1,806          10,627
   Increase (decrease) in accounts payable and accrued expenses                31,420         (62,394)       (491,392)
   Increase (decrease) in deposits and advance rentals                         16,963          (2,581)         (2,598)
                                                                           ----------     -----------    ------------
          
   Net cash provided by operating activities                               $1,540,873     $ 1,661,538    $  1,454,555
                                                                           ==========     ===========    ============
</TABLE>

See accompanying report of independent auditors and notes to financial 
statements.

                                                                               8
<PAGE>
 
                             De Anza Properties - X
                            (A Limited Partnership)

                         Notes to Financial Statements

              For the Years Ended December 31, 1996, 1995 and 1994


1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

CASH AND CASH EQUIVALENTS

The Partnership invests its cash not needed for working capital in highly liquid
short-term investments consisting primarily of money market funds. The
Partnership considers such items to be cash equivalents. Restricted cash at
December 31, 1996 and 1995 is comprised of the cash reserves established in
connection with the sale of certain property described in Note 3. The
Partnership maintains some of its cash in bank deposit accounts which, at times,
may exceed the federally insured limits. No losses have been experienced to date
related to such accounts.  The Partnership places its cash and cash equivalents
with quality financial institutions and believes it is not exposed to any
significant concentrations of credit risk on cash and cash equivalents.

FINANCIAL INSTRUMENTS

The carrying value of the Partnership's cash and cash equivalents, accounts
receivable and accounts payable approximates their fair value at December 31,
1996, due to the short maturity of these instruments. The carrying value of the
note payable approximates fair value at December 31, 1996, based on the current
borrowing rates for similar obligations.

LOAN COSTS

The costs incurred in obtaining financing are capitalized and amortized over the
terms of the respective loans. The loan costs pertaining to the loan secured by
Colonies of Margate were written off upon the sale of the property (see Note 3).

USE OF ESTIMATES

The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities at December 31, 1996 and
1995 and revenues and expenses for the years ended December 31, 1996, 1995 and
1994. Actual results could differ from those estimates.

See accompanying report of independent auditors and notes to financial
statements.

                                                                               9
<PAGE>
 
                             De Anza Properties - X
                            (A Limited Partnership)

                   Notes to Financial Statements (Continued)

              For the Years Ended December 31, 1996, 1995 and 1994


1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

PROPERTY AND EQUIPMENT

In 1996, the Partnership adopted Statement of Financial Accounting Standards No.
121, Accounting for the Impairment of Long-Lived Assets and for Long-Lived
Assets to Be Disposed Of, which requires impairment losses to be recorded on
long-lived assets used in operations when indicators of impairment are present
and the undiscounted cash flows estimated to be generated by those assets are
less than the assets' carrying amount. Assets to be disposed of are reported at
the lower of carrying amount or fair value less costs to sell. Property and
equipment were stated at cost at December 31, 1995.

Depreciation is computed using the declining-balance method based on estimated
useful lives as follows:

<TABLE>
<CAPTION>
                                 Years
                                -------
<S>                             <C>
Land improvements                    35
Buildings and improvements      15 - 20
Furniture and equipment           5 - 8
Mobile homes                          7
Transportation equipment          3 - 6
</TABLE>

Maintenance and repairs are expensed as incurred.

In July 1996, the Partnership began actively marketing the sale of its remaining
property, Woodbridge Meadows Apartments. In accordance with Statement of
Financial Accounting Standards No. 121, the Partnership ceased depreciating the
assets' carrying value at that time.

See accompanying report of independent auditors and notes to financial
statements.

                                                                              10
<PAGE>
 
                             De Anza Properties - X
                            (A Limited Partnership)

                   Notes to Financial Statements (Continued)

              For the Years Ended December 31, 1996, 1995 and 1994


1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

INCOME TAXES

Since the Partnership's income is allocated to the partners, there is no
provision for income taxes reflected in the accompanying financial statements.
The amount of income for federal tax purposes for the years ended December 31,
1996, 1995 and 1994 was $1,032,148, $3,488,188 and $17,582,090, respectively.
The income for federal tax purposes was calculated as follows:

<TABLE>
<CAPTION>
                                                                                     December 31,                
                                                                           1996          1995           1994     
                                                                        ----------     ----------   -----------
<S>                                                                     <C>            <C>          <C>          
Net income per financial statements                                     $1,346,746     $3,260,442   $16,080,772  
Tax basis depreciation in excess of financial statements 
 depreciation                                                             (189,195)        63,140       (17,233) 
Financial statements amortization in excess of tax basis 
 amortization                                                                    -              -        10,848  
Gain on sale of property and equipment                                    (143,365)       164,606     1,579,179  
Other - net                                                                 17,962              -       (71,476) 
                                                                        ----------     ----------   -----------
                                                                                                                 
Income for federal tax purposes                                         $1,032,148     $3,488,188   $17,582,090   
                                                                        ==========     ==========   ===========
</TABLE>

Partners' capital as reflected on the financial statements differs from the
amount reflected on the Partnership's federal tax return for the years ended
December 31, 1996, 1995 and 1994.  Partners' capital is reconciled as follows:

<TABLE>
<CAPTION>
                                                                                       December 31,                 
                                                                            1996           1995           1994      
                                                                         ----------     ----------     -----------
<S>                                                                      <C>            <C>            <C>           
Partners' capital per financial statements                               $5,637,210     $5,541,046     $ 7,805,545  
Syndication costs                                                         2,368,296      2,368,296       2,368,296  
Accumulated depreciation difference                                         303,171       (105,572)       (642,595) 
Deferred expense                                                            431,202        431,202         431,202  
Aggregate of differences described in the preceding reconciliation         (314,598)       227,746       1,501,316  
Financial statement basis of deferred gain                                  843,923      1,024,923               -  
Other                                                                         5,150          5,150          65,781  
                                                                         ----------     ----------     -----------
Partners' capital per federal tax return                                 $9,274,354     $9,492,791     $11,529,545   
                                                                         ==========     ==========     ===========
</TABLE>

See accompanying report of independent auditors and notes to financial 
statements.

                                                                              11
<PAGE>
 
                             De Anza Properties - X
                            (A Limited Partnership)

                   Notes to Financial Statements (Continued)

              For the Years Ended December 31, 1996, 1995 and 1994


2. PARTNERSHIP AGREEMENT

The Partnership was formed on September 16, 1977 to acquire and operate income-
producing residential real properties. The Partnership owns and operates
Woodbridge Meadows Apartments, a 375-unit apartment complex in Irvine,
California which was sold during 1997 (see Note 8). The Partnership also owned
Aptos Pines, a 170-space community in Aptos, California, which was sold in 1995
and Colonies of Margate, an 819-space community in Margate, Florida, which was
sold in 1994 (see Note 3).

A cash general partner is a general partner who purchased limited partnership
units and, to the extent of these contributions, will participate in the
benefits of Partnership ownership in the same manner as a limited partner.

The partnership agreement provides that distributable cash, as defined, will be
distributed to the cash general and limited partners, up to a sum equivalent to
6% per annum of their adjusted cash capital contributions, as defined. Cash is
then distributed 5.2736% to the cash general and limited partners and 94.7264%
to the general partners, up to a sum equivalent to 2% per annum of the aggregate
adjusted cash capital contributions of the cash general and limited partners.
Any additional cash is distributed 76.3184% to the cash general and limited
partners and 23.6816% to the general partners. Net income is allocated in the
same proportion as cash distributions to partners; however, general partners
receive a minimum 1% allocation. If no distributions are made, the net income is
allocated 85.7910% to the cash general and limited partners and 14.2090% to the
general partners. Losses are allocated 85.7910% to the cash general and limited
partners and 14.2090% to the general partners.

See accompanying report of independent auditors and notes to financial 
statements.

                                                                              12
<PAGE>
 
                             De Anza Properties - X
                            (A Limited Partnership)

                   Notes to Financial Statements (Continued)

              For the Years Ended December 31, 1996, 1995 and 1994


3. SALE OF PROPERTY AND EQUIPMENT

COLONIES OF MARGATE

In 1993, the Partnership entered into negotiations through De Anza Group, Inc.
(DAG), the former parent company of the operating general partner, for the sale
of Colonies of Margate (Margate). On January 19, 1994, the Partnership entered
into an Acquisition Agreement to sell Margate to MHC Operating Limited
Partnership (MHC). The sale was part of an overall transaction for the sale of
the related management business of DAG and other mobile home communities
affiliated with DAG.  The sale closed escrow on August 18, 1994.

The sales price for Margate was $23,147,228. Additional proceeds of $557,192,
which were included in the sales prices for calculating the gain on sale of
property and equipment, were received from MHC to fund a General Reserve. Excess
proceeds of $7,133,000 were distributed to the cash general and limited partners
as a return of capital on September 16, 1994, after repayment of debt of
$13,523,715, sales and closing costs of $644,488, a prepayment penalty of
$1,618,831, and $784,386 set aside toward various required reserves.

The Partnership has been charged with certain costs for the transaction, some of
which were based upon an allocation of costs from the overall transaction with
MHC. Such transaction costs have been capitalized and deducted in the
determination of net gain on the sale of the Partnership's property and
equipment. Transaction and closing costs charged to the Partnership totaled
$644,488 as of December 31, 1994.

In addition to the $784,386, funds from operations totaling $240,537 were used
to establish the following cash reserves:

<TABLE>
<S>                                <C>
MHC Reserve                         $181,000
General Reserve                      557,192
Independent Committee Reserve        286,731
</TABLE>

See accompanying report of independent auditors and notes to financial 
statements.

                                                                              13
<PAGE>
 
                             De Anza Properties - X
                            (A Limited Partnership)

                   Notes to Financial Statements (Continued)

              For the Years Ended December 31, 1996, 1995 and 1994


3. SALE OF PROPERTY AND EQUIPMENT (Continued)

COLONIES OF MARGATE (Continued)

The MHC Reserve was required by the Amended Acquisition Agreement. The General
Reserve and Independent Committee Reserve were established to fund contingent
liabilities that may arise out of the MHC transaction.  During 1995, the MHC
Reserve was released in full and distributed to the cash general and limited
partners as a return of original capital. During 1996, $143,365 of the
Independent Committee Reserve was released from restricted cash.

Pursuant to the guidelines of Financial Accounting Standards No. 66, "Accounting
for Sales of Real Estate," the Partnership deferred in 1994 the recognition of
gain on that portion of the sale proceeds represented by the MHC Reserve,
General Reserve and Independent Committee Reserve, totaling $1,024,923. During
the years ended December 31, 1996 and 1995, the Partnership recognized as income
$143,365 attributable to the Independent Committee Reserve released and $181,000
attributable to the MHC Reserve released, respectively.

APTOS PINES

On July 11, 1995, Aptos Pines (Aptos) was sold to a non-profit mutual benefit
corporation formed by the Aptos Pines Homeowners' Association.  The sales price
for Aptos was $4,325,000, all cash, and an additional $35,000 was received as
reimbursement of capital outlays related to the newly constructed sewer system.
The Partnership incurred sales and closing costs of approximately $56,200,
distributed $4,265,000 of the proceeds to the cash general, limited and general
partners, and reserved the remaining $38,800.  A portion of the distribution to
the cash general and limited partners represents a return of original capital.

WOODBRIDGE MEADOWS

In October 1996, the Partnership entered into a contract with J.F. Shea Co.,
Inc. to sell its remaining property, Woodbridge Meadows (see Note 8).

See accompanying report of independent auditors and notes to financial 
statements.

                                                                              14
<PAGE>
 
                             De Anza Properties - X
                            (A Limited Partnership)

                   Notes to Financial Statements (Continued)

              For the Years Ended December 31, 1996, 1995 and 1994


4. TENANT LEASES

Apartment units are leased for periods of less than one year or on a month-to-
month basis. The Partnership accounts for all leases as operating leases. Rental
revenue is reported ratably over the lease terms. The annual rents from
noncancelable operating leases from tenants for the year ending December 31,
1997 is $640,105.

5. SECURED NOTE PAYABLE

Secured note payable at December 31, 1996 and 1995 consisted of:

<TABLE>
<CAPTION>
                                                         December 31,
                                                     1996           1995
                                                   ----------     ----------
<S>                                                <C>            <C>
 
Note collateralized by first trust deed on the 
 Woodbridge Meadows property, payable in monthly 
 installments of $47,093, including interest at 
 10%, maturing in 2014                             $4,658,315     $4,752,430
                                                   ==========     ==========
 
</TABLE> 
 
The annual maturities on the secured note payable for the years subsequent to
December 31, 1996 are as follows:

<TABLE> 
<CAPTION> 
                                                         Year Ending
                                                         December 31,
                                                         ------------
    <S>                                                  <C>  
    1997                                                   $  103,970
    1998                                                      114,857
    1999                                                      126,884
    2000                                                      140,171
    2001                                                      154,848
    Thereafter                                              4,017,585
                                                           ----------
                                                           $4,658,315
                                                           ==========
</TABLE>

The entire note will be paid off upon the sale of Woodbridge Meadows.

See accompanying report of independent auditors and notes to financial 
statements.

                                                                              15
<PAGE>
 
                             De Anza Properties - X
                            (A Limited Partnership)

                   Notes to Financial Statements (Continued)

              For the Years Ended December 31, 1996, 1995 and 1994


6. TRANSACTIONS WITH RELATED PARTIES

Pursuant to a former management agreement dated October 1, 1985, De Anza Assets,
Inc., a former affiliate of the operating general partner, was paid a management
fee in the amount of 5% of the annual gross receipts from the operations of the
Partnership's properties. The payment of this fee is subordinated to the
distributions to the cash general and limited partners of 6% of their adjusted
capital contributions each year and is noncumulative, except in the case of a
sale, refinancing or other disposition of the Partnership's properties. In that
case, the difference between the management fee actually paid and the management
fee that would have been paid if it were not subordinated is payable out of the
proceeds from the sale, refinancing or other disposition after payment of the
limited partners' priority return and capital contribution and the general
partners' incentive interest. Management fees of $238,218 were paid to De Anza
Assets, Inc. during the year ended December 31, 1994.

On August 18, 1994, subsequent to the sale of the Colonies of Margate and the
property management business of DAG, as discussed in Note 3, the property
management of Woodbridge Meadows Apartments was assumed by Terra Vista
Management, Inc. (Terra Vista). Terra Vista is wholly owned by Michael D.
Gelfand, president of the operating general partner and the son of Herbert M.
Gelfand.  Herbert M. Gelfand, together with Beverly Gelfand, was the sole
shareholder of the operating general partner and the controlling shareholder of
DAG prior to the sale. Terra Vista was paid $192,085, $187,208 and $74,818 for
management fees during the years ended December 31, 1996, 1995 and 1994,
respectively.

In addition, DAG or a wholly owned subsidiary was paid $198,746 for the year
ended December 31, 1994, and Terra Vista Management, Inc. or De Anza Leasing
Corporation, a related party and affiliate of the Operating General Partner,
respectively, was paid $155,840, $156,991 and $84,815 for the years ended
December 31, 1996 and 1995 and for the period from August 18, 1994 through
December 31, 1994, respectively, for performing bookkeeping, regional
management, computer, disposition and investor relations services necessary for
the operation of the Partnership and its properties.

See accompanying report of independent auditors and notes to financial 
statements.

                                                                              16
<PAGE>
 
                             De Anza Properties - X
                            (A Limited Partnership)

                   Notes to Financial Statements (Continued)

              For the Years Ended December 31, 1996, 1995 and 1994


7. INCOME PER 1% GENERAL PARTNERSHIP INTEREST AND CASH GENERAL AND LIMITED
   PARTNERSHIP UNIT

Income per 1% general partner interest was computed based on the general
partners' share of net income as reflected on the statement of changes in
partners' capital (deficit).  Income per cash general and limited partnership
unit was computed based on the cash general and limited partners' share of net
income as reflected on the statement of changes in partners' capital (deficit)
and the number of units outstanding (22,869 units in each year).

8. SUBSEQUENT EVENT

SALE OF WOODBRIDGE MEADOWS

On or about October 7, 1996, the Partnership entered into an agreement to sell
Woodbridge Meadows Apartments (Woodbridge) to J.F. Shea Co., Inc. or an
affiliate (Buyer) for $29,600,000. As a result of renegotiations with the Buyer
following completion of Buyer's inspections, the sales agreement was amended on
January 15, 1997 to reduce the sale price to $29,433,000, all cash. The closing
occurred February 19, 1997. Net sale proceeds, after repayment of mortgage debt
of $4,757,740 (including a prepayment penalty of $116,042), broker's commission
of $261,330 and estimated transaction costs of $164,398, totaled approximately
$24,249,532. The net proceeds were distributed to the cash general and limited
and general partners on March 4, 1997. Following the release of the remaining
Colonies of Margate sale reserves, the Partnership will cease operations,
commence liquidation and dissolve.

See accompanying report of independent auditors and notes to financial 
statements.

                                                                              17
<PAGE>
 
                            De Anza Properties - X
                            (A Limited Partnership)

                   Notes to Financial Statements (Continued)

             For the Years ended December 31, 1996, 1995 and 1994


9.  SCHEDULE OF REAL ESTATE AND ACCUMULATED DEPRECIATION

<TABLE>
<CAPTION>
                                                 INITIAL COST TO THE PARTNERSHIP                       
                                               ------------------------------------     
                                                                                              COST        
                                                                      BUILDINGS,          CAPITALIZED     
                                                                     IMPROVEMENTS,         SUBSEQUENT     
                                                                     FURNITURE AND             TO         
         DESCRIPTION            ENCUMBRANCES       LAND                EQUIPMENT          ACQUISITION     
-----------------------------------------------------------------------------------------------------
<S>                             <C>            <C>                   <C>                  <C>        
Woodbridge Meadows                                                                                   
 apartment complex,                                                                                  
 Irvine, California             $4,658,315     $2,700,000            $11,343,940          $5,834,128 
                                ====================================================================

<CAPTION> 
                           GROSS AMOUNT CARRIED AT CLOSE OF PERIOD 
                                    ENDED DECEMBER 31, 1996
                         ------------------------------------------
                                                                                                                     LIFE ON WHICH
                                                                                                                     DEPRECIATION
                                                                                                                       IN LATEST
                                      BUILDINGS,                                                                         INCOME
                                    IMPROVEMENTS,                                                                     STATEMENT IS
                                   FURNITURE AND                       ACCUMULATED       DATE OF                        COMPUTED
     DESCRIPTION         LAND        EQUIPMENT          TOTAL          DEPRECIATION    CONSTRUCTION     ACQUISITION      YEARS
------------------------------------------------------------------------------------------------------------------------------------

<S>                   <C>          <C>             <C>                 <C>             <C>              <C>           <C>
Woodbridge Meadows            
 apartment complex,           
 Irvine, California   $2,989,265   $16,888,803     $19,878,068/(1)/    $10,208,135     1978 - 1979       11/13/78        5 to 35
                      ==============================================================================================================

</TABLE>

(1)  Aggregate cost for federal income tax purposes is $19,878,067.

See accompanying report of independent auditors and notes to financial 
statements.

                                                                              18
<PAGE>
 
                             De Anza Properties - X
                            (A Limited Partnership)

                   Notes to Financial Statements (Continued)

              For the Years Ended December 31, 1996, 1995 and 1994


10.  RECONCILIATION OF REAL ESTATE AND ACCUMULATED DEPRECIATION

<TABLE>
<CAPTION>
 
                                                                                          BUILDINGS, 
                                                                                        IMPROVEMENTS, 
                                                                                        FURNITURE AND 
                                                                      LAND                EQUIPMENT               TOTAL
                                                                  -----------           -------------          -----------
<S>                                                               <C>                   <C>                    <C>
REAL ESTATE:
Balance at January 1, 1994                                        $ 6,515,774            $24,023,684           $30,539,458
 Additions during 1994                                                      -                286,938               286,938
 Reductions due to sale of property and equipment during 1994      (2,455,440)            (5,279,978)           (7,735,418)
                                                                  -----------            -----------           -----------
Balance at December 31, 1994                                        4,060,334             19,030,644            23,090,978
 Additions during 1995                                                      -                348,519               348,519
 Reductions due to sale of property and equipment during 1995      (1,071,069)            (2,603,324)           (3,674,393)
                                                                  -----------            -----------           -----------
Balance at December 31, 1995                                        2,989,265             16,775,839            19,765,104
 Additions during 1996                                                      -                112,964               112,964
                                                                  -----------            -----------           -----------
Balance at December 31, 1996                                      $ 2,989,265            $16,888,803           $19,878,068
                                                                  ===========            ===========           ===========
 
ACCUMULATED DEPRECIATION:
Balance at January 1, 1994                                                                                     $12,933,755
 Depreciation charged to expense during 1994                                                                       862,298
 
 Reduction due to sale of property and equipment during 1994                                                    (3,047,859)
                                                                                                               -----------
Balance at December 31, 1994                                                                                    10,748,194
 Depreciation charged to expense during 1995                                                                       656,105
 Reduction due to sale of property and equipment during 1995                                                    (1,482,620)
                                                                                                               -----------
Balance at December 31, 1995                                                                                     9,921,679
 Depreciation charged to expense during 1996                                                                       286,456
                                                                                                               -----------
Balance at December 31, 1996                                                                                   $10,208,135
                                                                                                               ===========
</TABLE>

See accompanying report of independent auditors and notes to financial 
statements.

                                                                              19
<PAGE>
 
                                                                      SCHEDULE I
                                                                     Page 1 of 3

                             De Anza Properties-X
                            (A Limited Partnership)

                       Schedule of Projects' Operations
<TABLE>
<CAPTION>
 
                                                                       YEAR ENDED DECEMBER 31, 1996
                                        ------------------------------------------------------------------------------------------
                                               WOODBRIDGE MEADOWS          DE ANZA PROPERTIES-X                   TOTALS
                                        ------------------------------------------------------------------------------------------
                                                             % OF                           % OF                             % OF
                                             AMOUNT         INCOME         AMOUNT          INCOME         AMOUNT            INCOME
                                        ------------------------------------------------------------------------------------------
<S>                                         <C>             <C>            <C>             <C>           <C>                <C>
INCOME                                                                                                                  
 Gain on sale of property and 
  equipment (Note 3)                                 -           -         $ 143,365        64.28%       $  143,365           3.53% 
 Rent (Note 4)                              $3,713,584       96.77%                -            -         3,713,584          91.45
 Other                                         123,973        3.23            12,417         5.57           136,390           3.36
 Interest and dividends                              -           -            67,235        30.15            67,235           1.66
                                        ------------------------------------------------------------------------------------------
                                             3,837,557      100.00           223,017       100.00         4,060,574         100.00
                                        ------------------------------------------------------------------------------------------

EXPENSES                                                                                                                
 Interest                                      471,805       12.29                 -            -           471,805          11.62
 Maintenance, repairs and supplies             362,999        9.46               385         0.17           363,384           8.95
 Other                                         235,157        6.13            67,713        30.36           302,870           7.46
 Salaries, including $20,819 paid to                                                                                    
  related parties (Note 6)                     279,364        7.28            17,721         7.95           297,085           7.32
 Depreciation and amortization                 289,536        7.54                 -            -           289,536           7.13
 Professional fees and services,                                                                                        
  including $101,646 paid to related 
  parties (Note 6)                             104,472        2.72           118,997        53.36           223,469           5.50
 Real estate taxes                             208,208        5.43                 -            -           208,208           5.13
 Utilities                                     202,205        5.27               236         0.11           202,441           4.99
 Management fees paid to related party                                                                                  
  (Note 6)                                     192,085        5.01                 -            -           192,085           4.73
 Insurance                                     103,524        2.70               400         0.18           103,924           2.56
 Payroll taxes and employee benefits            59,021        1.54                 -            -            59,021           1.45
                                        ------------------------------------------------------------------------------------------
                                             2,508,376       65.37           205,452        92.13         2,713,828          66.84
                                        ------------------------------------------------------------------------------------------
NET INCOME                                  $1,329,181       34.63%        $  17,565         7.87%       $1,346,746          33.16%
                                        ==========================================================================================
</TABLE>
See accompanying report of independent auditors and notes to financial 
statements.

                                                                              20
<PAGE>
 
                                                                      SCHEDULE I
                                                                     Page 2 of 3

                             De Anza Properties-X
                            (A Limited Partnership)
                       Schedule of Projects' Operations
<TABLE>
<CAPTION>
 
                                                                    YEAR ENDED DECEMBER 31, 1995
                                   ------------------------------------------------------------------------------------------------
                                        APTOS PINES             WOODBRIDGE MEADOWS      DE ANZA PROPERTIES-X           TOTALS
                                   ------------------------------------------------------------------------------------------------
                                                   % OF                       % OF                   % OF                     % OF
                                   AMOUNT         INCOME         AMOUNT      INCOME      AMOUNT     INCOME       AMOUNT      INCOME
                                   ------------------------------------------------------------------------------------------------
INCOME
<S>                                <C>            <C>            <C>         <C>         <C>        <C>          <C>         <C>
 Gain on sale of property
  and equipment (Note 3)           $2,077,041      81.95%                 -       -      $  181,000  70.79%      $2,258,041   34.57%
 Rent (Note 4)                        313,099      12.35         $3,622,076   96.80%              -      -        3,935,175   60.25
 Utilities                            143,232       5.65                  -       -               -      -          143,232    2.19
 Other                                  1,330       0.05            119,637    3.20               -      -          120,967    1.85
 Interest and dividends                     -          -                  -       -          74,678  29.21           74,678    1.14
                                   ------------------------------------------------------------------------------------------------
                                    2,534,702     100.00          3,741,713  100.00         255,678 100.00        6,532,093  100.00
                                   ------------------------------------------------------------------------------------------------
 
EXPENSES
 Interest                                   -          -            481,556   12.87               -      -          481,556    7.37
 Maintenance, repairs and
  supplies                             25,429       1.00            351,804    9.40               -      -          377,233    5.78
 Other                                  9,230       0.36            239,462    6.40          45,022  17.61          293,714    4.50
 Salaries, including $22,186
  paid to related parties (Note 6)     38,577       1.52            264,214    7.06          20,525   8.03          323,316    4.95
 Depreciation and amortization         46,107       1.82            613,078   16.38               -      -          659,185   10.09
 Professional fees, including 
  $127,517 paid to related 
  parties (Note 6)                     42,057       1.66            120,725    3.23          75,764  29.63          238,546    3.65
 Real estate taxes                     27,226       1.07            210,590    5.63               -      -          237,816    3.64
 Utilities                             93,109       3.67            190,654    5.10             244   0.10          284,007    4.35
 Management fees, including
  $187,208 paid to related party       24,234       0.96            187,208    5.00               -      -          211,442    3.24
 Insurance                              8,441       0.33             93,579    2.50             195   0.08          102,215    1.56
 Payroll taxes and employee
  benefits                             10,339       0.41             52,282    1.40               -      -           62,621    0.96
                                   ------------------------------------------------------------------------------------------------
                                      324,749      12.80          2,805,152   74.97         141,750  55.45%       3,271,651   50.09
                                   ------------------------------------------------------------------------------------------------
NET INCOME                         $2,209,953      87.20%        $  936,561   25.03%       $113,928  44.55%      $3,260,442   49.91%

                                   ================================================================================================
</TABLE>
See accompanying report of independent auditors and notes to financial 
statements.

                                                                              21

<PAGE>




                                                                      SCHEDULE I
                                                                     Page 3 of 3

                             De Anza Properties-X
                            (A Limited Partnership)
                       Schedule of Projects' Operations
<TABLE>
<CAPTION>
 
                                                                       YEAR ENDED DECEMBER 31, 1994
                                ---------------------------------------------------------------------------------------------------
                                  APTOS PINES      COLONIES OF            WOODBRIDGE          DE ANZA 
                                                     MARGATE                MEADOWS         PROPERTIES-X          TOTALS
                                ---------------------------------------------------------------------------------------------------
                                         % OF                 % OF               % OF               % OF                  % OF
                                AMOUNT   INCOME  AMOUNT       INCOME  AMOUNT     INCOME  AMOUNT     INCOME   AMOUNT       INCOME
                                -------------------------------------------------------------------------------------------------
<S>                             <C>      <C>     <C>          <C>     <C>        <C>     <C>        <C>      <C>          <C> 
INCOME                                                                                                       
  Gain on sale of property                                                                                   
   and equipment (Note 3)              -      -  $16,322,297   92.42%          -      -         -        -   $16,322,297   73.55%
  Unrecognized gain (Note 3)           -      -   (1,024,923)  (5.80)          -      -         -        -    (1,024,923)  (4.62)
                                -------------------------------------------------------------------------------------------------
  Net gain recognized                  -      -   15,297,374   86.62           -      -         -        -    15,297,374   68.93
                                                                                                             
  Rent (Note 4)                 $577,154  76.09%   2,157,533   12.21  $3,611,530  96.87%        -        -     6,346,217   28.60
  Utilities                      179,358  23.65      179,907    1.02           -      -         -        -       359,265    1.62
  Other                            2,009   0.26       24,712    0.14     116,518   3.13  $  7,438    16.92%      150,677    0.68
  Interest                             -      -        1,339    0.01           -      -    36,533    83.08        37,872    0.17
                                -------------------------------------------------------------------------------------------------
                                 758,521 100.00   17,660,865  100.00   3,728,048 100.00    43,971   100.00    22,191,405  100.00
                                -------------------------------------------------------------------------------------------------
                                                                                                             
EXPENSES                                                                                                     
 Interest                            236   0.03      863,147    4.89     489,583  13.13     7,910    17.99     1,360,876    6.13
 Maintenance, repairs and
  supplies                        55,355   7.30      270,360    1.53     344,294   9.24         -        -       670,009    3.02
 Other                            22,477   2.96       72,848    0.42     232,241   6.23    26,774    60.89       354,340    1.60
 Salaries, including $44,958                                                                                 
  paid to related                                                                                            
  parties (Note 6)                65,724   8.66      203,563    1.15     245,381   6.58    41,161    93.61       555,829    2.50
 Depreciation and amortization    91,820  12.11      456,229    2.58     657,216  17.63     5,150    11.71     1,210,415    5.45
 Professional fees and                                                                                       
  services, including                                                                                        
  $232,581 paid to related                                                                                   
  parties (Note 6)                92,361  12.18      113,009    0.64     122,236   3.28    40,099    91.19       367,705    1.66
 Real estate taxes                43,574   5.74      220,269    1.25     210,156   5.64         -        -       473,999    2.14
 Utilities                       150,230  19.81      194,060    1.10     195,024   5.23       718     1.63       540,032    2.43
 Management fees, including                                                                                  
  $313,036 paid to related                                                                                   
  parties (Note 6)                31,971   4.21      108,368    0.61     186,403   5.00         -        -       326,742    1.47
 Insurance                        11,341   1.50       48,298    0.27      60,931   1.63         -        -       120,570    0.54
 Payroll taxes and employee
  benefits                        17,482   2.30       58,690    0.33      53,944   1.45         -        -       130,116    0.59
                                -------------------------------------------------------------------------------------------------
                                 582,571  76.80    2,608,841   14.77   2,797,409  75.04   121,812   277.02     6,110,633   27.53
                                -------------------------------------------------------------------------------------------------
NET INCOME (LOSS)               $175,950  23.20% $15,052,024   85.23% $  930,639  24.96% $(77,841) (177.02)% $16,080,772   72.47%
                                =================================================================================================
 
</TABLE>

See accompanying report of independent auditors and notes to financial 
statements.
                                                                             22 

<PAGE>
                                                                     SCHEDULE II
                                                                     Page 1 of 3

                            De Anza Properties - X
                            (A Limited Partnership)

    Schedule of Distributable Income, Partners' Distributions and Reserves

<TABLE>
<CAPTION>
 
                                                     YEAR ENDED DECEMBER 31,
                                            -----------------------------------------
                                               1996           1995           1994
                                            -----------------------------------------
 
<S>                                        <C>            <C>            <C>
Net income                                  $1,346,746    $ 3,260,442    $ 16,080,772
Add (deduct) adjustments per partnership
 agreement:
         Gain on sale of property             (143,365)    (2,258,041)    (15,297,374)
         Depreciation and amortization         289,536        659,185       1,210,415
         Debt amortization                     (94,115)       (85,194)       (135,433)
         Net change in accruals                 46,544        (15,576)       (474,766)
         Release of prior year's             
          reserves                           3,223,465      2,741,590       2,476,212
                                            -----------------------------------------
 
Cash available for distribution (1)          4,668,811      4,302,406       3,859,826
                                            -----------------------------------------
Cash distributions:
 Cash general and limited partners - 6%
  per annum of average adjusted
  capital contributions of $4,882,268,          
  $7,236,764 and $13,977,956 in 1996,
  1995 and 1994, respectively                  292,936        434,206         838,677
 General partners - 1.89% per annum of
  average adjusted capital contributions
  of $4,882,268, $7,236,764 and
  $13,977,956 in 1996, 1995 and          
  1994, respectively                            92,496        137,102         264,816
 Cash general and limited partners -
  additional distributions                     661,488        389,224          14,743
 General partners- additional                  
  distributions                                203,662        118,409               -
                                            ----------------------------------------- 
Total distributions                          1,250,582      1,078,941       1,118,236
                                            ----------------------------------------- 
Reserves from operations (2)                $3,418,229    $ 3,223,465    $  2,741,590
                                            =========================================
</TABLE>
See accompanying report of independent auditors and notes to financial
statements.
                                                                             23 

<PAGE>

                                                                     SCHEDULE II
                                                                     Page 2 of 3

                             De Anza Properties - X
                            (A Limited Partnership)

     Schedule of Distributable Income, Partners' Distributions and Reserves
                                  (Continued)
<TABLE>
<CAPTION>
 
                                                    YEAR ENDED DECEMBER 31,
                                        --------------------------------------------
                                               1996           1995           1994
                                        --------------------------------------------
 
<S>                                        <C>            <C>            <C>
Proceeds from sales or refinancing of
 properties available for distribution
 or reserves (2)(3)                                  -    $ 4,268,814    $ 7,917,386
         Distribution to cash general
          and limited partners (3)                   -     (4,053,732)    (7,133,000)
         Distribution to general
          partners (3)                               -       (392,268)             -
         Use of reserves for capital
          improvements                               -       (163,300)             -
         Release of prior year's
          reserves                          $2,323,978      2,664,464      1,880,078
                                        --------------------------------------------
Reserves from sale and refinancing of
  properties (2)(3)(4)                      $2,323,978    $ 2,323,978    $ 2,664,464
                                        ============================================
 
Distributions to cash general and
 limited partners per original 
 $1,000 investment
    From operations
      Amount                                $    41.75    $     36.02    $     37.33
                                        ============================================ 
       Percent (of adjusted capital)             19.55%         11.38%          6.11%
                                        ============================================
 
    From sales or refinancing (2)(3)
      Amount                                         -    $    177.34    $    312.04
                                        ============================================ 
       Percent (of original capital)                 -          17.73%         31.20%
                                        ============================================
</TABLE>

See accompanying report of independent auditors and notes to financial 
statements.

                                                                              24
<PAGE>
 
 
                                                                     SCHEDULE II
                                                                     Page 3 of 3


                             De Anza Properties - X
                            (A Limited Partnership)

     Schedule of Distributable Income, Partners' Distributions and Reserves
                                  (Continued)

/(1)/ Cash available for distribution represents amounts as defined by the
      partnership agreement.

/(2)/ The operating general partner has exercised its discretion in reserving
      amounts in excess of required reserves for operations, additions to
      property and equipment, and future distributions.

/(3)/ On August 18, 1994, the Partnership sold Colonies of Margate for a price
      of $23,147,228, and additional proceeds of $557,192 were received to fund
      a General Reserve. After repayment of debt of $13,523,715, sales and
      closing costs of $644,488 and a prepayment penalty of $1,618,831, the
      Partnership netted proceeds of $7,917,386. Of this amount, $7,133,000 was
      distributed in September 1994 to the cash general and limited partners,
      representing a return of original capital. The balance of $784,386 is
      being held to fund certain required reserves (see Note 3).

      On July 11, 1995, the Partnership sold Aptos Pines for an all cash price
      of $4,325,000. After payment of sales and closing costs of $56,200 and
      reserving $3,800, the balance of $4,265,000 was distributed to cash
      general and limited partners, representing a return of original capital,
      and to general partners (see Note 3).

      In 1995, the MHC Reserve of $181,000 reserved from the sale of the
      Colonies of Margate was released and distributed to the cash general and
      limited partners as a return of original capital (see Note 3).

      In 1996, $143,366, one-half of the Independent Committee Reserve reserved
      from the sale of the Colonies of Margate was released.

/(4)/ Included in the reserves from sales and refinancing of properties is
      $700,558, $843,923 and $1,024,923 at December 31, 1996, 1995 and 1994,
      respectively, in specific reserves established to fund contingent
      liabilities that may arise from the MHC transaction.

See accompanying report of inependent auditors and notes to financial 
statements.
                                                                              25