Instead of telling you that you got the wrong PIN, the router has sent no response at all.
[!] WARNING: Receive timeout occurred This may be caused by low AP signal strength. Though you seem to have a good signal.
It can also be caused by low transmitter power in your wireless client. Make sure you increase your txpower on your wireless card before you begin. But since the AP is responding to other signals, this may not be the problem.
The README shipped with Reaver addresses what is most likely the situation:
Some poor WPS implementations will drop a connection on the floor when an invalid pin is supplied instead of responding with a NACK message as the specs dictate. To account for this, if an M5/M7 timeout is reached, it is treated the same as a NACK by default. However, if it is known that the target AP sends NACKS (most do), this feature can be disabled to ensure better reliability. This option is largely useless as Reaver will auto-detect if an AP properly responds with NACKs or not:
Try adding the -n option.
You also need more patience. It can take several minutes before reaver has figured out all the idiosyncrasies of the router, and many hours or even days before it recovers the PIN. Set it to run and come back the next day.